Many experienced estate planning attorneys have a list of the worst estate planning mistakes that Texans can make. For many attorneys, at the top of the list is inadvertently leaving money to the wrong person in their estate plan. Most people have strong preferences on who should inherit their money and property after they pass away—this is why they have an estate plan in place. However, even individuals with estate plans may make mistakes that lead the wrong person to benefit from the error. Below are some of the most common estate planning mistakes and how they can be avoided, according to Texas estate planning attorneys.
Ex-Spouses Inheriting Money
One estate planning mistake that many people fear is their ex-spouse inheriting their money or property after they pass away. Most formerly married couples do not want their ex-spouse to receive their assets if they die first. While most state laws ensure former spouses lose property rights after a couple is divorced, individuals must change their beneficiaries on estate planning documents as well.
Before getting divorced, most individuals will name their spouse as their beneficiary—for pensions, insurance policies, and bank account beneficiaries as well. If the beneficiary designation is not changed after the divorce and one of the former spouses passes away, then their ex may inherit the asset. Estate planning attorneys can help advise clients on changing these designations as soon as the divorce is finalized and provide recommendations on who should replace the ex-spouse as the beneficiary.