Creating an estate plan is the responsible thing to do. The average estate plan includes multiple documents, including a will, an advance medical directive and power of attorney. With everything that goes into creating an estate plan, you may not realize some issues should be addressed.
Failing to address some issues may make your estate plan worthless after you pass away. Here you can learn about some of the issues you may need to address with your estate plan.
1. Failing to check an estate plan after a move
If you move to New York from a different state, you may need to update your estate plan to meet different requirements. You need to ensure that the documents are enforceable in the state of New York. For example, if you create your medical power of attorney in a different state, New York courts may not consider it legal or valid when you pass away.
2. Not naming people to receive your assets
A general statement about who gets your possessions after you pass away creates gaps and possible conflict. You need to make sure you name specific assets to specific people. You may also want to talk to your children and others in your will about whom you want to have certain items. This can help prevent conflict and having the will contested after you pass away.
3. Failing to make beneficiary designations
You can name beneficiaries to things like insurance policies and retirement accounts. If you do this, the assets will go directly to the named beneficiary rather than going through probate (this happens if no beneficiaries are named).
As you can see, several issues may arise with an estate plan. Knowing these can help you avoid them and ensure that there are no issues with the plan you create after you pass away.