Just as we discussed last month regarding Medicaid planning, there is also a lot of misinformation in the area of ​​estate planning. Almost every day someone will tell us, for example, that he heard that if you have a will “there is no will.” Unfortunately, this type of misinformation is often passed on as helpful estate planning advice. Clients often learn the hard way that relying on such advice can cost them thousands of dollars. In an effort to help educate and prevent others from making these all too common mistakes, we’ve compiled our list of the top 10 estate planning mistakes.

1. Procrastination.

Almost everyone is at least aware that having an estate plan is important. Yet too often, they procrastinate doing something about it. Don’t let this happen to you.

2. Not having a will.

Most people don’t even have a basic will. A will is essential in designating who will be responsible for managing your estate and to whom your estate will be distributed after your death.

3. Have no Powers.

Planning for death is only one part of estate planning. In addition to a will, it is extremely important to have a durable power of attorney for your finances and a health care power of attorney for medical decisions.

4. Failure to recognize a will will not prevent succession.

Assets in a decedent’s name alone will not prevent probate, even if there is a will.

5. Do not consider a trust.

Too many people mistakenly believe that a trust is only for the rich. They also don’t understand how expensive and time-consuming probate can be. A trust can often save your family time and money if you become disabled or die.

6. Not properly funding a trust.

For those people who decide that a trust is right for them, simply signing the trust is only part of the process of having a trust. Assets such as a house or other real estate, bank accounts, stocks, bonds, etc., should be renamed to the name of the trust to avoid probate.

7. Do it yourself.

While everyone loves to save money, the old adage that “you get what you pay for” is particularly true in estate planning. If your estate and your loved ones are important to you, it is strongly recommended that you do not attempt to plan your estate on your own.

8. Put the children’s names on the assets.

Adding children’s names to bank accounts, real estate, or other assets is often the surest way to create problems after their death.

9. Incorrectly naming beneficiaries.

A good estate plan should also take into account assets that a beneficiary has, such as life insurance, annuity, IRA, or 401K. Failure to properly name primary and secondary beneficiaries will undermine even a well-drafted will or trust.

10. Not periodically reviewing your estate plan.

A will or trust drawn up years ago may not be appropriate today. As circumstances or laws change, it is recommended that your plan be reviewed by an attorney specializing in elder law.