The Top Estate Planning Mistakes That Can Cost Your Family Thousands
Estate planning is one of those things most people know they should do but keep putting off. Life gets busy, the topic feels uncomfortable, and it is easy to assume there will be time to deal with it later. But the cost of waiting, or of doing it halfway, can fall squarely on the people you love most. A poorly planned estate does not just create inconvenience. It can trigger unnecessary taxes, drag your family through months of court proceedings, and leave behind conflicts that are difficult to resolve. Here are some of the most common mistakes from our Brooklyn estate planning attorneys that lead to those outcomes.
Assuming a Will Is Enough
A will is a foundational document, but it does not do everything people think it does. It does not avoid probate, which in New York can be a slow and expensive process. It does not control assets that pass outside of your estate, like retirement accounts, life insurance policies, or jointly held property. And it does nothing to protect you or your assets if you become incapacitated before you die. A will is a starting point, not a complete plan.
Failing to Update Beneficiary Designations
One of the most preventable estate planning mistakes is also one of the most common. Retirement accounts and life insurance policies pass directly to whoever is named as beneficiary, regardless of what your will says. If you named an ex-spouse fifteen years ago and never updated the designation, that person may inherit the account. If you never named anyone at all, the asset may end up going through probate or passing in ways you never intended. Reviewing beneficiary designations regularly, especially after major life changes, is essential.
Not Planning for Incapacity
Estate planning is not only about what happens when you die. It is also about what happens if you cannot make decisions for yourself. Without a durable power of attorney, your family may have to go to court to get legal authority to manage your finances on your behalf. Without a health care proxy, important medical decisions may be made without clear guidance from you. These documents are straightforward to put in place, but the consequences of not having them can be significant.
Leaving Real Estate Outside of a Trust
In New York, real property that is held in your individual name and left through a will must pass through the Surrogate’s Court before it can be transferred to your heirs. That process takes time and costs money. Placing real estate in a revocable living trust allows it to transfer privately and efficiently, without court involvement. For Brooklyn property owners especially, where real estate often represents the bulk of a family’s wealth, this distinction matters enormously.
Treating Estate Planning as a One-Time Event
Life changes, and your estate plan needs to keep up. Marriage, divorce, the birth of children or grandchildren, the death of a named executor or trustee, significant changes in assets, all of these are reasons to revisit your documents. An outdated plan can be almost as problematic as no plan at all.
Schedule a Consultation With our Team Today
At Yeung & Associates, PLLC, we help families in Brooklyn, New York build estate plans that are thorough, current, and built to hold up when it matters most. If it has been a while since you reviewed your plan, or if you have never put one together at all, there is no better time to start than now.
Source:
nia.nih.gov/health/advance-care-planning/choosing-health-care-proxy