At Steslicki & Ghannam, our Plymouth estate planning attorneys pride ourselves on educating and helping our fellow Michigan residents avoid costly errors. By offering insights and tips, our lawyers empower individuals to take control of their estate planning process, reducing complications and ensuring their wishes are honored.
We believe it’s about providing value upfront so people can make informed decisions—whether they start the process themselves or seek professional guidance from our Wayne County estate planning lawyers.
Here, we discuss some common Michigan estate planning mistakes and how to avoid them.
Common Estate Planning Mistakes and How Michigan Residents Can Avoid Them
Understanding estate planning mistakes before it is too late is crucial because your loved ones could face unnecessary legal challenges without one.
They include:
- Failing to Create a Will or Trust: One of the most common mistakes is not having a will or trust. Without these documents, Michigan’s intestacy laws will determine how your assets are distributed, which may not align with your wishes. Avoid this by consulting an estate planning attorney to create a clear and legally sound will or trust.
- Not Updating Your Estate Plan: Life events such as marriage, divorce, the birth of a child, or acquiring new assets should prompt updates to your estate plan. Failing to do so can lead to unintended beneficiaries or disputes. Regularly review and revise your estate plan to reflect changes in your life circumstances.
- Ignoring Estate Taxes: While Michigan does not have a state estate tax, large estates could still be subject to federal estate taxes. Proper estate planning strategies, such as gifting and setting up trusts, can help minimize potential tax liabilities.
- Naming the Wrong Executor or Trustee: Choosing an executor or trustee who is either unqualified or unwilling to fulfill your wishes can create complications. Select someone responsible and capable of handling complex tasks, and always name a backup in case the first choice cannot serve.
- Overlooking Beneficiary Designations: Retirement accounts, life insurance policies, and other financial assets often pass directly to the named beneficiary. Failing to update these designations can lead to assets going to the wrong person. Make sure your beneficiary designations are current and align with your overall estate plan.
- Not Planning for Incapacity: Many overlook the need for powers of attorney and healthcare directives. Without these, if you become incapacitated, your loved ones may need to go to court to manage your affairs. Avoid this by including powers of attorney and living wills in your estate plan.
- Failing to Plan for Long-Term Care: The high cost of long-term care can deplete your estate. Incorporating Medicaid planning or long-term care insurance into your estate plan can help protect your assets and ensure you have the funds needed for future care.
Addressing these common estate planning mistakes ensures that your assets are protected and your wishes are honored. We can help.
Contact our Skilled attorneys today at Steslicki & Ghannam
Contact our dedicated Plymouth estate planning attorneys today for guidance on effectively implementing plans for your and your family’s futures so you can confidently move forward.
