Costly estate planning mistakes to avoid in Oregon

On Behalf of | Jul 27, 2022 | Estate Planning

While creating an estate plan in Oregon is important, having a foolproof one is crucial. There are circumstances where an error could invalidate your entire plan. Some of the blunders that could cost you and your loved ones include:

Not having an estate plan

You may be surprised that only 33% of Americans have an established estate plan. If you divide that number by 50 states, the situation becomes alarming. Most people in Oregon make the mistake of thinking that estate planning is only reserved for wealthy individuals. However, there are some provisions that don’t care if you have assets or not; for example, a healthcare directive that would indicate your wishes in the event that you’re unable to make decisions for yourself is a necessity for everyone.

Not updating your plan regularly

Your estate plan is a reflection of your current life situation. Things are bound to change as time goes by, whether it’s a new job, marriage, kids, or grandkids. These changes require you to update your estate plan to accurately represent your wishes.

Failing to name a successor

You may have named a successor initially on your documents, but a time can reach when they can fail to perform their duties. It’s important to name more than one successor and have backups in case something happens to your first choice. Also, periodically reviewing your choices can help you ensure that they are still up for the task.

Not informing your family about your plans

Your estate plan is not of much use if your family doesn’t know where to find it or what’s in it. Letting them know where to find your will and other important documents is equally important as creating your plans.

Not understanding tax consequences

Estate taxes can take a big chunk of your inheritance if you’re not careful. In Oregon, if your property is worth $1 million and above, the state will take up to 16% of it. The federal government, on the other hand, can take up to 40% of your assets if they are worth $12,060,000 in 2022. You can plan your estate to avoid harsh cash consequences upon your death.

A well-crafted, comprehensive estate plan will ensure your wishes and your loved ones are adeptly taken care of in Oregon. It will also help avoid conflicts down the road.