Estate planning can be a complicated process, but it is also a very important process. Overlooked estate planning issues could come back to haunt your family, often after you are gone and can no longer do anything to fix the issue.
You don’t want this to happen to you, so be on the lookout for these five overlooked issues you absolutely do not want to forget to deal with when you are putting your plans in place for the future.
1. Providing for your pets
According to the ASPCA, 5.8 million dogs and cats entered shelters and rescues in 2024. Some of these animals came from homes where their owners passed away or became too old and sick to take care of them.
Going to the shelter can be an incredibly stressful experience for companion animals and there is a risk your pet could be euthanized if they end up in one, especially if they are also elderly or have medical issues.
You don’t want this to be the fate of your companion animal, so you should make sure to plan for what happens to your pets in case you become incapacitated or in case you pass away. You should consider naming a guardian for your pets and also potentially providing financially for their care.
2. Preparing for incapacity
If something happens and you become incapacitated, you need a plan in place for who is going to make medical decisions on your behalf if you cannot. You also need to provide some instructions on what specific kinds of medical care you want to accept versus reject, since there are a lot of interventions that can prolong your life without necessarily leaving you much quality of life.
Your assets also need to be managed in case you become incapacitated. After all, the bills still need to be paid on your home and other assets with ongoing expenses. And you may also have a business to run or investments that need managing.
You can prepare for incapacity and make sure that you have a plan in place to deal with these issues by doing things like naming a healthcare power of attorney and a durable general power of attorney and creating a living will.
3. Reducing the chances of a will contest
You don’t want your loved ones to end up in a fight over your assets when you are gone, so you may want to think about taking steps to reduce the chances of a will contest. You can do this by working with an attorney to make your will so that you ensure all formalities are followed. It can also be a good idea to include a no-contest clause in your will and to talk with loved ones about what you are including in the document so there are no surprises.
4. Changing your beneficiaries
If you have a life insurance policy, a 401(k), or other accounts that ask you to designate beneficiaries, you need to be sure you are keeping your beneficiary designations up-to-date. In other words, if your life circumstances change, be certain to update these forms.
This is important because your beneficiary designations on the forms will control what happens to the money and property in these accounts and to your life insurance death benefit. This is true even if your will specifies something different. You don’t want to end up with these assets going to the wrong person because you forgot to update a form.
5. Planning for how assets will transfer
Finally, you need to think about how assets are going to be transferred to your heirs and beneficiaries. That’s because the default is the probate process, but that process can be expensive, time-consuming, and very public which many people do not like.
If you would prefer a less expensive and more private way for your assets to transfer, then trust administration may be better than the probate process. However, if you want assets to transfer via trust administration instead of via probate, you are going to have to create a living trust and transfer property into it. You need to plan and prepare for this.
Getting Help from an Estate Planning Attorney
The Law Offices of James A. Miller, P.C. can provide the help and support you need to accomplish key estate planning tasks as you get your plan set up and on an ongoing basis. We will work with you to make sure your plans reflect your true wishes and that you are leaving the legacy you choose when you pass away. We can help you by identifying gaps in your estate plan and using the tools necessary to provide for those you love after you are gone.
Contact our Worcester estate planning lawyers today at (508) 799-8885 or reach out online to schedule a consultation and learn more about the assistance we can offer.