Three Lesser Known (But Still Common) Estate Planning Mistakes To Avoid
Every adult should have a comprehensive estate plan. Your estate plan should be customized to meet your specific needs. A cookie-cutter estate plan is simply not good enough for you and your family. Even people who know a lot about estate planning still often make errors. Here, our Boston estate planning attorney highlights three of the lesser known estate planning mistakes that you need to avoid in Massachusetts.
Lesser Known Estate Planning Errors to Watch for in Massachusetts
Mistake #1: Setting Up a Living Trust, But Never Funding It
A revocable living trust can be a great way to limit your estate’s exposure to probate. However, too many people in Massachusetts go through the time and expense of creating a revocable living trust but fail to actually transfer their assets into it. If your home, bank accounts, or investment assets are still in your individual name when you pass away, they will automatically be controlled by the trust.
Solution: After creating a trust, make sure you “fund” it by re-titling key assets into the trust’s name. Your Boston, MA estate planning attorney can help.
Mistake #2: Overlooking Digital Assets and Online Accounts
This is a big one for our times. We live in an increasingly digital world. You need to adjust your estate plan accordingly. Many people forget to plan for what happens to their online life—email accounts, social media, cloud storage, cryptocurrency wallets, and more. Without clear instructions, loved ones may not be able to access or manage these assets.
Solution: You should create a digital asset inventory and include access instructions. It is often best to use a password manager or secure document to store login credentials that your executor can easily access when the time comes.
Mistake #3: Naming the Wrong Person as Successor Trustee or Power of Attorney
You need to empower decision makers who you can actually trust to act with competence, care, and in your best interests. People often choose a close relative or friend as trustee or agent without considering whether that person has the time, temperament, or skills to handle complex legal and financial matters. A bad choice can lead to big problems. For example, you should never pick someone as your power of attorney (POA) who does not actually want to take on the responsibility. Along the same lines, you should avoid someone who lacks the relevant expertise.
Solution: Be sure that you make the right choice. You should consider choosing someone with financial acumen or a professional fiduciary—especially if your estate is large or complicated.
Speak to Our Boston, MA Estate Planning Attorney Today
At Fisher Law LLC, our Massachusetts estate planning lawyer is a compassionate advocate for people and families. We help clients put the right plan in place to protect their rights and achieve their goals. Do not go it alone. If you have any questions or concerns about estate planning, please do not hesitate to contact us for a confidential consultation. Our firm provides estate planning representation throughout all of the Greater Boston metropolitan area.
