While everyone knows that they will not live forever, it can still be uncomfortable to discuss and plan for the end. Death and long-term care can be difficult to fathom, but if a person wants to take control of their situation, they will take estate planning and end-of-life planning seriously. Here are a few estate planning mistakes Pennsylvania residents should avoid.
A lot of people have some type of plan in place. However, it may be poorly designed. If a person does not have a will or trust in place, state laws and the court system will determine where all their assets go. Individuals need a legally binding will that has been well thought out. It’s also important to update a will over time. For example, when a person moves to a new state, they will need to review their estate plan.
It has been estimated that about 75% of people who are over the age of 65 will need long-term care at some point. The cost of long-term care can exceed $100,000 a year. Those who are planning for retirement must factor in long-term and disability care.
Some take asset ownership too lightly or execute it improperly. This can cause major problems later on. For example, if spouses own property together and both names are on the titles, this will create creditor protections and efficiencies that will more easily allow a surviving spouse to maintain the property if their partner passes away.
Individuals who are interested in avoiding mistakes related to estate planning may want to speak with a lawyer. Legal counsel could provide more detailed information regarding estate planning and probate. They can help a client create trusts and wills that are legally binding.