Creating a will or trust is an important first step in estate planning, but it alone isn’t enough to ensure your wishes are fulfilled. A simple oversight or missing piece of information could mean your legacy isn’t handled the way you intended.
1. Properly Title Your Assets
A common mistake in estate planning is failing to properly title assets. Even with a trust, if your home or other property isn’t titled in the trust’s name, it won’t pass through the trust, potentially leading to probate. To avoid this, ensure your property, investment accounts, and significant assets are titled in the trust’s name, or have correct beneficiary designations. This is especially true for jointly owned properties and accounts, where titling can override your will or trust. (Forbes)2. Appoint the Right Executor or Trustee
Choosing a reliable executor (for a will) or trustee (for a trust) is crucial. This person will manage your estate after you pass, handling paperwork, debts, and asset distribution. While many appoint a spouse or family member, consider their capability to handle the role. They should be trustworthy, organized, and financially literate. If family members aren’t suited, consider a professional, such as a bank’s trust department or an estate attorney.(NerdWallet)3. Update Beneficiary Designations
Assets like life insurance policies, retirement accounts, and bank accounts often pass directly to beneficiaries, regardless of your will or trust. It’s essential to keep these designations up to date. If you’ve experienced a life change, like divorce or remarriage, failing to update these can result in an unintended party receiving your assets. Regularly reviewing beneficiary designations ensures alignment with your estate plan.(Investopedia)4. Consider a Durable Power of Attorney
A will or trust only takes effect after you pass away, but what if you become incapacitated? A durable power of attorney allows someone to manage your finances and legal matters if you’re unable to. This ensures continuity and avoids the need for a court-appointed guardian.5. Review Your Plan Regularly
Life circumstances and laws change, and so should your estate plan. A will or trust that reflected your wishes five years ago may no longer apply. Changes in family dynamics, financial status, or even laws can impact your estate plan. Review it every 3–5 years or after major life events like marriage, divorce, or significant financial changes.6. Address Tax Implications
Depending on the size of your estate, your heirs might face estate or inheritance taxes. While federal estate taxes apply to estates over $12.92 million (as of 2023), state-level taxes may apply at lower thresholds. To reduce tax burdens, consider strategies like gifting assets during your lifetime or setting up tax-advantaged trusts.(IRS.gov)7. Incorporate Healthcare Directives
Estate planning isn’t just about finances—it includes healthcare decisions. A living will and healthcare power of attorney document your preferences for medical care if you become incapacitated, including decisions about life support and resuscitation. Having these in place relieves your family from making difficult healthcare decisions during emotional times.(NIH.gov)Holistic Estate Planning Doesn’t Have to Be Overwhelming
Drafting a will or trust is a crucial step in estate planning, but it’s only the beginning. Properly titling assets, appointing the right executor, updating beneficiary designations, and addressing tax implications are essential for a complete plan. With SmartHeritance, staying on top of your estate plan is no longer overwhelming—it’s streamlined and stress-free. Our platform simplifies the process of organizing your estate information, ensuring it is secure, your wishes are clear, and your loved ones are cared for according to your desires.
Visit SmartHeritance today to discover how we can help you protect your legacy and provide peace of mind for the next generation.