• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
  • Services
    • Asset & Business Planning
    • Dental Practice Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid and Elder Law
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Carmel, Indiana Elder Resources
        • Fishers Indiana Elder Law Resources
        • Greenfield, Indiana Elder Law Resources
        • Greenwood Elder Resources
        • Indianapolis Elder Law Resources
        • Lawrence Elder Law Resources
        • Plainfield Elder Resources
        • Zionsville Elder Law Resources
    • Estate Planning
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Alzheimer’s and Dementia
      • Asset Protection Planning
        • Business Succession Planning
      • Challenging an Indiana Will
      • Elder Abuse
      • Elder Law
        • Medicaid
        • Medicaid Planning
        • Planning for Long-Term Care
      • Estate Planning
        • Avoiding Estate Taxes
        • Estate Planning for Parents
        • Frequently Asked Questions for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Women and the Need for Estate Planning
      • Financial Planning
      • How Divorce Impacts Your Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Pet Planning
      • Philanthropy in Your Estate Plan
      • Probate
      • Power of Attorney
      • Serving as Trustee
      • Small Estate Administration
      • Trusts
        • Trust Administration
        • Trust Administration
        • Serving as Executor
      • Testamentary Trusts
      • Understanding Your Social Security Retirement Benefits
      • Updating Your Estate Plan
      • Veteran Benefits
      • Wills
        • Contesting a Will
    • Newsletter
    • Pre Consultation Form
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss Of A Loved One
      • Probate Resources
        • Carmel, Indiana Probate Resources
        • Greenfield Probate
        • Greenwood Probate
        • Indianapolis Probate
        • Plainfield Probate
        • Indiana Probate
        • Zionsville Probate
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Areas We Serve
    • Boone County
      • Lebanon
      • Zionsville
    • Hamilton County
      • Carmel
      • Fishers
    • Hancock County
      • Greenfield
    • Hendricks County
      • Brownsburg
      • Plainfield
    • Johnson County
      • Franklin, Indiana
      • Greenwood
    • Marion County
      • Central Indiana
      • Indianapolis
  • Blog
  • Contact Us

Frank & Kraft, Attorneys at Law

Indianapolis Estate Planning Attorneys

CONNECT WITH US TODAY(317) 684-1100

Attend a Free Workshop
Home » Top Five Estate Planning Mistakes to Avoid

Top Five Estate Planning Mistakes to Avoid

August 25, 2015Estate Planning

Top Five Estate Planning Mistakes to Avoid

People sometimes make assumptions with regard to estate planning, and they make decisions that ultimately yield negative results. In this blog post, we will look at five estate planning mistakes that people often make when they do not understand all of the facts.

1.) Do-it-Yourself Estate Planning

There are websites on the Internet that sell do-it-yourself legal documents, including last wills and living trusts. While it is not against the law to create your own estate planning documents, you may want to take pause before you decide to go it alone using downloads or worksheets that you purchase online.

The highly respected magazine Consumer Reports has advised against DIY estate planning, and you may want to heed their advice.

2.) Enabling a Spendthrift

If you leave direct, lump sum bequests through the terms of a last will, there could be people in the family who squander their inheritances. These loved ones may experience hardships later on.

There are estate planning tools that can be used to protect a spendthrift from his or her own poor decision-making.

3.) Failure to Protect Assets

Legal actions can enter the picture when you have been able to accumulate assets. If you are the target of a lawsuit, a great deal could be lost.

There are asset protection strategies that can be utilized when you are planning your estate. You can protect assets for your own purposes, but you can also protect assets that you intend to leave to your loved ones.

4.) Estate Tax Inaction

High net worth individuals can be exposed to the federal estate tax. The tax is applicable on asset transfers that exceed $5.43 million. It is important to understand that any real estate that you own is countable, and life insurance proceeds are also part of your estate.

The estate tax carries a 40 percent top rate that can take a huge bite out of your legacy. If you fail to implement tax efficiency strategies, your family could pay a heavy price.

5.) No Incapacity Plan

Many elders become unable to communicate sound decisions late in their lives. If you were to become incapacitated without making any preparations in advance, the state could appoint someone to handle your affairs. People who fail to take action often become wards of the state.

You can prevent a guardianship if you include an incapacity plan within your broader estate plan.

Our Firm Can Help

The average layperson is simply not going to understand the lay of the land when it comes to estate planning. If you discuss your unique personal situation with a licensed estate planning attorney, you can be certain that you are taking the right steps to provide for your loved ones.

If you would like to take action, contact us through this page to set up a no obligation consultation: Indianapolis IN Estate Planning Attorneys.

  • Author
  • Recent Posts
Paul A. Kraft, Estate Planning Attorney
Paul A. Kraft, Estate Planning Attorney
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.

Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Paul A. Kraft, Estate Planning Attorney
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
  • Will Medicaid Pay a Family Member to Care for Me in Indiana? - September 26, 2023
  • Challenging a Will in Indiana Based on Lack of Testamentary Capacity - September 21, 2023
  • The Spendthrift Beneficiary: Protecting Assets from Reckless Spending - September 19, 2023

Other Articles You May Find Useful

Benefits estate planning attorney
What Are the Benefits of Working with an Estate Planning Attorney?
Estate planning questions
What Are Some Good Estate Planning Questions to Ask Myself?
charitable gift annuity
What Is a Charitable Gift Annuity?
Estate litigation
How Might an Estate End Up in Litigation?
Dollarphotoclub
How Can I Incorporate Charitable Gifting into My Estate Plan?
after death
What Happens to My Estate after My Death?

Primary Sidebar

Frank & Kraft, Attorneys at Law

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

Blog Subscription

Signup for our blog to receive our latest estate planning insights!

Where We Are

Frank & Kraft Attorneys at Law
135 N. Pennsylvania Street Suite 1100
Indianapolis, IN 46204-2485
Phone: (317) 684-1100
Fax: (317) 684-6111

See Larger MapGet directions

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

frankkraft_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
footer-logo

Frank & Kraft Attorneys at Law
Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.

© 2023 · American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy | Sitemap | Contact Us