Establishing an estate plan is an essential part of protecting your assets and ensuring your wishes are carried out after your death. Unfortunately, many people make common mistakes when creating an estate plan that can have serious consequences for themselves and their loved ones. In this blog post, we will discuss some of the most common mistakes people make when establishing an estate plan, with a focus on Alberta law, and how to avoid them.

Not Having an Estate Plan

One of the most significant mistakes people make is failing to establish an estate plan. Many people assume that they do not need an estate plan because they do not have significant assets, but this is not the case. Everyone, regardless of their financial situation, should have an estate plan in place to ensure that their wishes are carried out after their death.

Not Updating Your Estate Plan

Another common mistake is failing to update your estate plan. Your life circumstances can change over time, such as marriage, divorce, or the birth of a child, and these changes can have an impact on your estate plan. It is essential to review and update your estate plan regularly to ensure it reflects your current wishes and circumstances.

Not Considering Taxes

When establishing an estate plan, it is important to consider taxes. In Alberta, there is no provincial estate tax, but there may be taxes at the federal level. Failure to consider taxes can result in a significant reduction in the value of your estate and a reduction in the assets that are passed on to your beneficiaries.

Failing to Consider the Needs of Your Beneficiaries

When creating an estate plan, it is essential to consider the needs of your beneficiaries. This includes not only financial needs but also their personal circumstances. For example, if you have a dependent with special needs, you may need to create a trust to provide for their ongoing care and support.

Not Having a Valid Will

A valid will is a critical component of any estate plan. A will outlines your wishes and ensures that your assets are distributed according to your wishes. However, many people make the mistake of not having a valid will in place, which can lead to your assets being distributed according to the laws of intestacy. This means that your assets may not be distributed as you intended.

Not Using Trusts

Trusts can be an effective way to protect your assets and ensure they are distributed according to your wishes. However, many people make the mistake of not using trusts in their estate plan. Trusts can be used to protect assets from creditors, provide for the ongoing care of dependents, and minimize taxes.

Contact Tiffen Law Office

At Tiffen Law Office, we understand the importance of establishing an estate plan that reflects your wishes and protects your assets. We can help you avoid the common mistakes people make when establishing an estate plan and create a plan that works for your unique circumstances. We offer a range of estate planning services, including drafting wills, establishing trusts, and creating powers of attorney. Contact us today to schedule a consultation and start protecting your legal interests.