To quell the possibility of a mistake on your estate plan, you need to eschew the urge to plan your estate yourself. You may not have the skills and experience to create a flawless estate plan. Thus, it is advised that you hire a competent and experienced estate planning attorney to help you plan your estate.

Let’s fill you in on some common mistakes to avoid when planning your estate.

• Failing to plan your estate

 Each year, several estate owners make this serious mistakes. Unfortunately, they don’t get to pay for their mistakes, their children, spouse and loved ones get to.

Because death is inevitable, you need to plan your estate like you’ll die the next day. This is the only way to ensure that you don’t procrastinate. You need to put necessary plans in place to ensure that your spouse and children are well catered for, and to also ensure that your assets are well managed upon your demise. So take note of this mistake and make effort to avoid it.

• Failing to update your will

Don’t just create a will and hide it in a safe. From time to time, take a look at your will and see where you can make updates. Look at things that have changed in your life and make updates accordingly. Did you get a new property? Did you get divorced and marry another wife? Did your wife give birth?  To make sure that your assets are well accounted for in your will, make occasional updates when necessary.

• Failing to plan for disability

Disability, like death, is unpredictable. You cannot predict when you will leave this earth, neither can you predict if you’ll become disabled or incapacitated. For this reason, you need to plan for disability. You never know, this plan may save you if something bad happens.

When incapacitated, you will need someone to take care of your medical affairs, someone to cater for your children, handle your business, etc. If you failed to make necessary plans before your incapacitation, the government will choose who will make decisions on your behalf. However, if you planned for this, your power of attorney will work in your favor.

• Selecting the wrong individual to handle your estate

People are often fond of this serious mistake. A bad estate executor can ruin your estate in a jiffy. Ensure you consult with close family and friends before you select an estate executor. You would want to select someone that best represents you when choosing an estate executor.

Why do you need and Estate Planning Attorney

Estate planning can be quite complex. This plan can determine the future of your children, spouse and those you care about. For this primary reason, it is important you ensure that you create a quality estate plan. An estate plan that can cater for your family and those you care about when you are no more. Creating such an estate plan is not easy, truth be told. If you aren’t an experienced attorney you’ll find it very difficult to create such estate plan.

Would you like to gamble with the destiny of your children by creating an estate plan yourself? Are you confident of creating an error-free estate plan? One that conforms to the laws of your state? Can you create an estate plan that is in line with your wishes regarding your estate? Tasks like this are left for the professionals. You need the help of a component estate planning attorney if you want the best estate plan.  These professionals are experienced. They know the system like the back of their hands. They are also current with the estate laws of your state. What more can you ask for?

As one of the best Law Firms in New York, we boast of some of the best Attorneys in the State. Contact us, let’s help you plan your estate!

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Understanding domiciliation

In so many states, your recognized permanent address is taken into account. This permanent address is known as your domicile, and is the property where you are expected to come back to no matter where you are currently. Some people, due to business, sport or vacation can spend months up to years in a foreign country but may also have a home in their own state. Regardless of how much time you spend in your domicile, it will still be legally regarded as your domicile. Most times, this address is what appears in your voter’s card, passport, bank accounts, etc.

What is the reason for this, you ask? Simply for tax purposes! The state in which you are domiciled has a great influence on your overall tax liabilities. It is this state that your income and estate taxes would go to when you pass away, and where probate will also be conducted.

But that doesn’t exactly mean you won’t have to pay those taxes in other states in which you own real property. In fact, it will still be taxed if that state imposes state estate tax on estates owned therein. However, it is possible that your current state of residence does not impose these taxes but your domiciliary state does.

Also, it is worthy of note that sometimes your domicile may not be so clear-cut and then each state would entitle itself to a piece of your property, claiming to be your legal domicile. Therefore, you should declare in your estate plan that so-named state is your domicile. While doing this, ensure that your documents and ID cards also say the same thing.

Ancillary Probate

A major issue people who own property in multiple states face is ancillary probate. First of all, probate is the legal procedure by which your estate is administered and disbursed after your death. It is a rather complicated, expensive and time-consuming legal process.

It is officiated in the probate court in the county where you lived and/or owned real property. What this immediately tells you is that probate will take place in each individual state where you own property. Probate in one state is enough headache on its own; imagine how much expenses and stress your family would have to handle when you pass away if you have property in up to 3 states. They would be traveling here and there!

But luckily, this unnecessary stress could be avoided simply by adopting the same estate planning strategies used to avoid probate in one state. You can get an estate planning attorney (highly recommend) to help you create a living trust and naming it as the owner of all your real property.

Another way to avoid probate for property in multiple states is by establishing a limited liability company or family limited partnership. After doing this, you then have to name your real estate as property of the unit. An estate planning attorney can help you prepare and execute this.

Tax liabilities for real property in multiple states

Another major consideration as regards estate planning for property owned in multiple states is tax. Some states impose estate tax and income tax on estates in addition to the general federal estate tax. Imagine having real property in two states of which they are both tax liable. It means a considerable amount would be going to the government rather than your loved ones. But the good news is you can use the same estate planning devices to avoid tax as you would if it were a single state. You could simply gift the property to a loved one before you die, sell it or include it in your trust.

However, you should be very careful when dealing with gifting as it has a negative impact on your long-term care plans. If you plan to include the estate which you own in another state in your limited liability company, you also have to note that some states will still tax it regardless.

Get help from an estate planning attorney

To be on the safe side, we advise you speak with an estate planning attorney near you. He would be knowledgeable in the estate laws surrounding your state and will educate you on the consequences and advantages of each estate planning strategy you take.

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Estate planning mistakes to avoid

Failure to have an estate plan

Several Americans die without creating a will. That, I would say, is a great tragedy. If you die without a will, you are simply giving the government the right to share your assets according to the law of your state. This law is often regarded as the intestate law.

Many married couples assume that when a spouse dies (without a will), his or her assets is automatically transferred to the living spouse according to the law of intestacy. That is very wrong. When such happens, the estate of the deceased will have to undergo a process called probate. Probate is one process you wouldn’t want your children or loved ones to experience.

Failure to plan for the unforeseen

If for instance, you were involved in a ghastly accident (God forbid) that got you incapacitate, what will happen? How will your medical needs be met? In other words, who will make those important medical and financial decisions for you during this period? If you failed to plan for an unforeseen situation like this, you may be left frustrated.

All estate plans are to contain a financial power of attorney or a health care power of attorney. A financial power of attorney is a document that gives a designated individual the authority to make financial decisions on your behalf. On the other hand, a health care power of attorney is also a legal document that gives a selected individual the authority to make crucial health care decisions on your behalf. If peradventure you failed to include those legal documents in your estate plan and you somehow get incapacitated, the court will select an individual who will make those crucial decisions on your behalf.

Failure to update estate plan

An estate plan is not something you do and forget. When certain primary life changes occur, you will have to update your estate plan. Also, when you decide to modify your goals or when certain estate laws change, you will have to update your plan to conform to your new goals or the recent estate law of your state.

For instance, if you decide to relocate to a new state, you will need to appraise your estate plan. Contact an estate planning attorney who is conversant with the law of the estate and make the necessary adjustments. If you fail to carry out that simply task, there may be problem when the time for your estate plan to be activated comes.

In addition, if a beneficiary dies, or a new baby is introduced to the family, your will may need to make some modifications to your existing estate plan.

Who do you need to plan your estate?

Preparing an estate plan is one thing and preparing a “good” estate plan is another. The latter should be the primary aim of any estate owner. You may ask yourself, how do you prepare such an estate plan? It’s simple. Contact an estate planning attorney.

A competent estate planning attorney can help you prepare an estate plan that mirrors your intentions. One that makes you live each day in confidence. A good attorney has the necessary resources needed to plan a top-notch estate plan. In addition, they have the experience and expertise, something you are lacking when it comes to making an estate plan.

Ensure you contact us if you feel the need to plan your estate. Our Attorneys are one of the best out there. Remember, the earlier the better so don’t hesitate. Now is the time for estate planning, so plan your estate now!

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