[email protected]

Estate planning is often viewed as a task for the distant future, but it is one of the most important steps you can take to secure your family's financial well-being today, while you still have time. When it comes to estate planning, you don’t want any of your loved ones to suffer as a result of something you did wrong. Unfortunately, many people make critical mistakes during the estate planning process. 

This article takes a look at ten estate planning mistakes that people commonly make and ways to help you avoid them. With thoughtful and thorough consideration, along with some experienced guidance, you can ensure that you create an estate plan that is guaranteed to carry out your wishes and safeguard your loved ones the way you intended. Let’s get started!

1. Starting Too Late

Why this is a mistake:

Delaying your estate plan puts your loved ones at risk. If you wait until health issues make it hard to make clear choices, or if you wait too long and are simply unable to complete them, you might die or become incapacitated without having prepared your estate for your loved ones’ benefit.

How to avoid it:

Get started early in your estate planning, even if you are still young and healthy or haven’t yet accumulated all the wealth you plan to leave to your heirs someday. Your basic plan can be modified as your situation changes, whether through marriage, the birth of a child, or other financial shifts. 

2. Failing to Create a Will

Why this is a mistake:

Without a will, your property would pass by intestate succession according

When you're a parent, your primary concern is ensuring the safety and well-being of your children. For parents of minor children—those under 18 years old—this responsibility includes planning for unforeseen circumstances, such as the untimely death of both parents. At KEYTLaw, LLC, a Scottsdale-based estate planning and LLC formation law firm, we understand the complexities and emotional weight of these decisions. With over 50 years of combined experience, Richard Keyt (Rick) and his son, former CPA Richard C. Keyt (Ricky), are here to guide you through the estate planning process, helping you protect your most valuable assets: your loved ones.

The Importance of Naming Guardians and Conservators

What Happens If You Don't Have a Plan?

One of the most critical aspects of estate planning for parents of minor children is designating guardians and conservators. If you and your spouse pass away without a will or other legal documents in place, the state will decide who will care for your children and manage their assets. This can lead to unwanted outcomes and added stress for your family during an already difficult time. The court's choice may not align with your preferences, especially regarding who will raise your children and how their inheritance will be handled.

Guardianship: Choosing Who Raises Your Children

A guardian is a person you designate in your will to care for your children if you die. This individual will make day-to-day decisions for your children, including those related to education, health, and general welfare. It's essential to choose someone who shares your values and whom you trust to raise your children in your absence. You can also name alternate guardians in case your first choice is

When it comes to passing on your wealth to your heirs, there is more to consider than just who gets what. As a parent, your job is never really done. Even after you are gone, you want to make sure that your children and grandchildren are financially secure but also financially responsible. You need to consider what your heirs will do with your wealth once you are gone. Will they waste it or put it to good use? Will they be able to take on the responsibility of managing wealth? 

Since everyone is different and situations are always changing, it is impossible to know what will happen in the future. However, there are measures you can take now to guarantee responsible management of your wealth whenever the time comes. 

After all, you worked hard to accumulate your wealth, and you want it to have a positive impact on your family. In order to accomplish this, an increasing number of people are creating what is referred to as a spendthrift trust, also known as a conditional or incentive trust, that permits requirements to be fulfilled before any distributions to beneficiaries are made. 

Typically, these trusts are set up to benefit adult children, as they are the ones most likely to need the protection that these trusts offer. When a person reaches adulthood, they have tipped their hand, so to speak, about whether they are trustworthy or untrustworthy when it comes to handling money. 

As a caring parent, it is important to safeguard your wealth from being used to support behaviors that go against your beliefs or could potentially harm your children in the future. Establishing