Nobody wants to think of their own death or when it will happen, but failing to plan can lead to more serious consequences. By creating a will and other estate planning documents, you can help ensure that your assets and loved ones will be taken care of.
If you wonder how to create a plan, you can start this process by knowing which mistakes to avoid.
Using an online will template
Although this seems like the fastest way to write and produce a printed version of your will, an online template may not meet legal requirements. State laws change often, and if the template is outdated, it can lead to your will missing key provisions.
Depending on a template can mean that you risk having an invalid will. Discussing your estate with a trusted attorney ensures that the future of your assets stays in your hands.
Not updating your list of assets
It is important to update your estate plan as your assets decrease or multiply. Keeping a detailed list of your possessions help make them easier to update when it is time to amend your will. These can include:
- Real estate: Home, land, rental properties (e.g., condominium, townhouse)
- Personal property: Furniture, clothing, jewelries, vehicles
- Bank accounts: Checking, savings
- Financial holdings: Bonds, stocks, mutual funds
Placing valuable properties under your heirs’ names
You might feel tempted to do this to bypass the steps in Indiana probate, but this method can imply that the properties were given as gifts, which can incur a large amount of gift tax. Although Indiana does not impose a gift tax, the Federal Government does. If the estate’s total value exceeds $11.7 million per individual, the tax rate can range from 18% to 40%, depending on the value of the estate.
Another reason this could end poorly is if your child gets into financial trouble. In this situation, their creditors can come for their properties, including yours.
Failing to plan for incapacity
This can refer to rare, tragic circumstances where you are still alive but incapable of making decisions. By including advanced directives in your will, your doctors, medical team and your family will have clear guidance about your choice of treatments or other medical preferences.
Being prepared for the worst can be good
Wills exist to protect people from dying intestate. Without a valid one, the state decides what happens to your assets. This can lead to unexpected issues and family disputes.
By drafting a will with a professional, you can protect your assets and leave with peace knowing that your loved ones will always be taken care of.