Estate planning is crucial for establishing your healthcare wishes in the case of mental impairment and protecting your beneficiaries after your death. While there are many potential mistakes a person can make, most of them are easy to avoid with careful preparation.
A lawyer knows the common issues with estate planning in Huntington Beach and can help you avoid errors throughout the process. Call a skilled attorney today to schedule a consultation if you need help planning your estate.
Failing to Name Contingent Beneficiaries
A contingent beneficiary is a secondary beneficiary who will receive the assets from an estate should the primary beneficiary die before the estate owner. Naming one is a critical part of estate planning.
When there is no contingent beneficiary and the primary passes away, the assets will return to the state. In these situations, there may be family disputes over whom the property should pass to instead.
Forgetting to Plan for Disability
No one wants to consider that they could become permanently disabled and not be able to live out their final years as they please. Unfortunately, this is a common occurrence, and many people fail to prepare for it. Most people in the United States are unprepared for unexpected illnesses or injuries leading to a disability later in life. A revocable trust is one useful estate planning tool allowing individuals to plan to manage property and assets during life and after death. They can also cancel the trust anytime if life-changing events or situations change.
A thorough estate plan should also include a durable power of attorney to grant another individual the legal ability to make medical and financial decisions on their behalf. There is also the option to create a power of attorney, granting someone the authority to make decisions in the event of incapacitation. A Huntington Beach attorney could help throughout the estate planning process to meet a person’s needs and avoid future issues.
The Most Common Living Trust Mistakes
Living trusts are a popular alternative to the Last Will and Testament, as they allow the assets held in the trust to skip the probate process. According to the California Probate Code § 15200 – 15414, a living trust can name the executor, establish guardianship for children, leave instructions for paying taxes and debt, and distribute the assets to the beneficiaries. Some of the most common living trust mistakes include the following:
- Missing crucial verbiage from the legal document, making it invalid
- Failing to fund the trust as per California law
- Not doing a regular review and making updates as needed
- Picking the wrong person to carry out their final wishes
A local lawyer experienced in handling estate planning issues could oversee the entire process and ensure there are no avoidable mistakes.
Consult a Huntington Beach Lawyer on Estate Planning Issues
Ensuring you avoid common mistakes is an important part of the estate planning process. When there are problems with your plan, it could lead to family disputes or challenges down the line. Careful preparation with legal counsel can help you avoid these issues.
Understanding the common issues with estate planning in Huntington Beach gives you the power to prevent them. A knowledgeable attorney could help prepare a thorough estate plan to protect your loved one and ensure they carry out your end-of-life medical care and final wishes after death. Call our firm today to learn how we can assist you every step of the way.