Estate Planning: Overcoming Four Major Mistakes
A 2021 study done by Caring.com estimated that more than two-thirds of Americans (68%) do not have an estate plan in place. Why? These four mistakes may play a role:
1. Not wanting to plan. Few people enjoy thinking about what happens after they’re gone. But if you don’t decide who gets what, the state where you live will. That means thinking about who should get your assets after your lifetime and considering what should happen if you’re incapacitated (see mistake #4). This is especially important if you have a large estate, minor and/or special needs children, real estate in multiple states, or business interests.
2. Not designating beneficiaries. Some assets, such as life insurance or retirement plans, pass outside of a will. Those plans offer an opportunity for you to name someone to inherit them. This is called a beneficiary designation.
3. Not reviewing asset titles. Asset titling refers to the way in which you own an asset—including in your individual name, jointly with someone else, or in a trust or other entity. Assets titled in joint tenancy pass outside your will and to the surviving joint tenant.
For example: A person’s will might indicate that everything goes to the children equally, but if a bank account is held in joint tenancy with just one child, it would pass only to that child. The result is that the children receive unequal shares even if your intention was to divide all assets equally.
4. Not planning for disability or medical emergency. According to the Alzheimer’s Association, 6.7 million Americans age 65 and older are living with Alzheimer’s disease. Older generations (as well as all competent adults) need to prepare for incapacity and create durable powers of attorney and advance directives or living wills.
Why do these mistakes happen?
Four big reasons are that the individual…
- Doesn’t think they have a large enough estate.
- Doesn’t like to think about incapacity or death.
- Didn’t set aside time.
- Doesn’t know how to start the process and/or doesn’t have an estate planning attorney.
Reach Out to Us
If you are among the majority of Americans who haven’t yet started the estate planning process, now is the time. Your family members and heirs will be grateful you did.
When you plan your estate, you can also leave a legacy for causes close to your heart. We would be happy to talk to you about how a gift to Vail Health Foundation will make a difference for those we serve in our community. Please contact us at Foundation@vailhealth.org or (970) 569-7766 to see how this gift can be a win-win.
You may also visit our Planned Giving website to learn more and sign up for our newsletter.
Information contained herein was accurate at the time of printing. The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
