Estate planning is important for the future of your legacy. However, common pitfalls and mistakes when drafting an estate plan can create issues for your loved ones. Even one small issue can create headaches for your beneficiaries.
To protect your legacy and your loved ones from complicated estate administration issues, it is crucial to understand how mistakes happen. Here are a few common mistakes you should avoid when drafting an estate plan:
1. Forgetting signatures
The main document in your estate plan is a will. A will determines who inherits from your estate. One of the most common mistakes when drafting a will is forgetting to include signatures. As the testator, your signature is critical — but so are the signatures of two disinterested witnesses. This means that they are not someone who benefits from your estate. A lot of people get their documents ready and — surprisingly — forget to sign them or forget they need witnesses.
2. Using premade templates
Many websites offer cheaper and faster estate planning templates, such as wills, trusts and power of attorney documents. While it may seem easier to use a premade estate planning template, these documents are often riddled with issues. If an online estate planning template has issues, it could invalidate the testator’s last wishes.
3. Misunderstanding state laws
Every state has unique estate planning laws. It is important to consider estate planning laws when drafting important legal documents. For example, some states allow handwritten wills or have different estate tax laws. Understanding these laws may be difficult for people who do not have legal experience.
If you are drafting your estate plan, you should always reach out for legal guidance and learn how to avoid major mistakes.