People often procrastinate when it comes to estate planning. Some simply don’t want to think about their mortality, while others feel they don’t own or control enough assets to justify the cost. Do-it-yourselfers, on the other hand, sometimes take pride in researching Florida’s laws to execute a comprehensive estate plan for free, by themselves, and without a lawyer’s help. But what most people don’t realize is that bad estate planning can end up costing them—and costing them big. Read more to learn about the consequences of common Florida estate planning mistakes, or contact Beacon Legacy Law today to schedule a Vision Meeting to begin the process of planning for your future with one of our skilled estate planning attorneys. Schedule a Vision Meeting Table of Contents 5 Ways Bad Estate Planning Could Cost You 1. An Insufficient Estate Plan Exposes Your Estate to Intestacy 2. Outdated Provisions Risk Your Heirs’ Inheritances 3. Conflict Could Compromise Your Estate’s Integrity 4. Inadequate Estate Planning Could Leave Your Liabilities Exposed 5. Poor Estate Planning Jeopardizes More Than Your Wealth Do You Need to Speak to an Estate Planning Lawyer? 5 Ways Bad Estate Planning Could Cost You 1. An Insufficient Estate Plan Exposes Your Estate to Intestacy Any person who dies without an estate plan is said to have died “intestate.” If you die intestate, your estate will be distributed in accordance with the Florida Probate Code’s rules of intestacy. Under these rules, only your closest living relatives will receive inheritances. This means that your surviving spouse and children will likely receive assets, but none of your other heirs will be entitled to any share of your estate. 2. Outdated Provisions Risk Your Heirs’ Inheritances Estate plans should never be left to gather dust. If you already have an estate plan, it needs to be regularly reviewed. This means getting in touch with a Florida estate planning lawyer after any big change to your personal life or to your financial circumstances. Common triggers for revision should include: Marriage Divorce The birth of a new child or grandchild The death of a named heir or beneficiary Significant changes to your income or your assets Moves to or from another state 3. Conflict Could Compromise Your Estate’s Integrity If you pass away without sufficient safeguards, your estate will be distributed under the supervision of the Florida probate court. During the probate process, all interested parties—which could include not only your heirs but estranged family members and creditors, too—will have the opportunity to object to provisions they find unreasonable or suspicious. Although many estate-related disagreements can be settled by an executor, others inevitably escalate into litigation. Since your executor is required to defend the estate from challenges, any lawsuit—even a lawsuit filed in bad faith—could cost your estate massive amounts of money in legal fees. You may be able to minimize liabilities by establishing a living trust, keeping your assets out of probate, and making it significantly more difficult for disinherited heirs and predatory lenders to stake unreasonable claims against your estate. 4. Inadequate Estate Planning Could Leave Your Liabilities Exposed Any omission or oversight in your estate plan could turn minor liabilities into major sources of grief—both for you and for your heirs. Some of the most common sources of conflict and confusion include: Wills with ambiguous language (we often see this in a DIY will) Estate plans that don’t follow the right procedures for disinheriting an heir in Florida Trusts that were formed improperly or that were never formally funded Inheritance provisions overridden by beneficiary designations 5. Poor Estate Planning Jeopardizes More Than Your Wealth Estate plans are about much more than money. By creating an estate plan, you have the chance—perhaps the only one you’ll ever get—to plan for life-altering injury and incapacity. Your lawyer could help you: Draft a living will Nominate a medical proxy to honor your values Execute an advance care directive to provide clarity for your relatives Delegate different powers of attorney to ensure catastrophe doesn’t limit your family’s ability to pay bills and meet the demands of everyday life Without an estate plan, a serious accident or life-threatening illness could force your relatives to go to court just to pay your mortgage or keep the lights on. Do You Need to Speak to an Estate Planning Lawyer in Palm City or Stuart? If you need help creating an estate plan to secure your future, call (772) 266-5108 or contact us online to schedule a vision meeting. We’re proud to serve residents of Stuart, Palm City, Jensen Beach, Jupiter, Jupiter Island, Tequesta, Hobe Sound, and Port St. Lucie.
