According to financial advisors, the vast majority of one’s final wishes do not come to fruition. The two main reasons why estate planning fails are lack of preparation on the part of heirs and failing to follow through on plan details or updates. New York residents who are seeking to embark on preparing these documents may benefit from more information to ensure successful execution of their wishes.
It is estimated that more than 70 percent of estate plan failures are due to the actions and decisions of the humans involved. Most plans handle all aspects of tax planning and other executable actions with little to no difficulty; unfortunately, if heirs are not likewise prepared to handle inherited wealth and assets, they may quickly lose all that their parents worked to accumulate. Heirs often fail because they had no knowledge of the value of their parent’s assets, or they were not educated on how to successfully manage those assets.
The second reason that estate plans do not meet expectations is that the owners did not follow through on fulfilling their obligations. For instance, if one sets up a trust to avoid probate and then fails to title assets over into that trust, there is no protection, and the estate will go into probate. Likewise, if one’s life circumstances change and these plans are not revised to reflect those changes, then the estate will be dealt with in the manner previously determined.
In spite of these possible complications, estate planning can be carried out successfully. Heirs can be informed as to the plans well in advance in an effort to ensure that they are prepared to handle their future obligations. Planners may also make it a point to revisit and update documents on a regular basis. New York residents who are concerned about drafting the plans that will best suit their needs may seek the guidance of an experienced attorney.
Source: Forbes, “Most Estate Plans Fail, But Yours Can Be A Success“, Bob Carlson, Accessed on May 26, 2018