Common Estate Planning Mistakes To Avoid In British Columbia

Avoiding An Estate Plan Altogether

People often ignore preparing an estate plan altogether. This is common in young adults. Delaying your estate plan will only increase uncertainties in your and your loved ones’ lives.

No matter how old you are, you should have an estate plan ready based on your wishes. May you live to be a hundred, but having an estate plan at hand gives you a sense of relief. You can always make changes to your plan with your lawyer’s help later in your life.

Not Updating Your Will

Always keep your will updated to ensure that it reflects your latest wishes. While preparing an estate plan early in life is important, it is equally important to keep it updated.

If it has been a while since you updated your plan, consult your will and estate lawyer in BC to review and update it if needed. Moreover, you should know that certain events may automatically revoke some of your will’s provisions. For example, getting a divorce will change the manner in which your wealth is distributed among your loved ones.

Ideally, you should review your will every two to three years to see if it needs any changes. Also, review it in the event of a major life event.

Failing To Plan For Incapacity

Estate planning is not limited to making arrangements in the case of your demise. It also involves making provision for your incapacity (if such an event occurs). Without a will, your family members will need to appeal to the court to become key decision-makers.

Include clauses related to your incapacity in your estate plan. Appoint a trusted decision-maker while you are mentally capable of making sound decisions. Prepare a Power of Attorney to handle your financial and corporate affairs. You can also prepare a Representation Agreement to receive proper healthcare support in the case of mental incapacity.

Ignoring Digital Assets

In 2025, digital assets will form a significant portion of people’s overall wealth. These assets include crypto investments, online bank accounts, and even social media accounts. Many people also consider digital photos and libraries as their digital assets. Include these assets in your estate plan to have them managed effectively.

Make a list of all digital assets in your estate plan and specify how you want them managed. Be precise and confidential about sensitive data like bank accounts, cryptocurrencies, etc.

Picking The Wrong Executor

A will’s executor plays the most important role in distributing your wealth after your demise. Picking the wrong executor can hamper smooth wealth distribution, nullifying all your efforts in preparing a will.

Choose the most trusted person you know as your will’s executor. Ensure that this person will remain honest and loyal while carrying out all your will’s actions.

An ideal will executor is unbiased and emotionally balanced. They should not be too involved in your family dynamics and have an objective view of all matters.

Overlooking The Joint Ownership Complications

Most estate planners choose joint ownership to avoid probate. Probate expenses can cost your loved ones a fortune after your demise. However, such an arrangement should be made properly to avoid complications. 

For example, if you put your child’s name on your house’s title, it may lead to tax consequences later. Such action may also lead to family disputes after your demise. 

If the provisions are not well-documented, your loved ones may find it difficult to prove in court whether your assets were gifted or held in trust. Work closely with your will and estate lawyer in BC to avoid such complications and document all your decisions precisely.

Avoiding Communication With Your Family

Your immediate family will be directly affected by your demise and the estate plan you prepare. It is not the best idea to surprise them unexpectedly with your decisions.

Without revealing all your estate plan’s provisions, communicate with your loved ones about your plans and motivations. Give them a vague idea of your intentions to prevent disputes and confusion. Effective and hearty communication with your family members may also motivate you to make necessary changes in your estate plan.