People often think that they do not need an estate plan. Some think that is because they are not old enough, wealthy enough or simply do not make it a priority. Everyone should have an estate plan in place. However in proceeding with estate planning, you should be aware of the 10 most common estate planning mistakes that people can make are:

1. You do not have an estate plan.

Many people avoid having an estate plan for various reasons. It is important to have a will or trust to transfer your assets at death. Not having any estate planning can lead to unnecessary expenses, complications and taxes as well unintended recipients. If you do not have a will or trust, the state where you are living at your death will decide who receives your property. Your family will often have to spend thousands of dollars determining to administer your estate after your death. If you have a second marriage and you pass away without a will or trust, your assets that are subject to probate will be distributed 50 percent to your surviving spouse and 50 percent to your children from a previous marriage. It does not matter how long you have been married.

2.Your documents have not been reviewed in years.

You should update your documents at the birth or death of a child, at the marriage, divorce or separation of anyone named in your will or trust, whenever there is a major tax law change, if you relocate to a new state, or any other significant change in your life.

3. You have gotten married or divorced.

Some people mistakenly believe that getting married does not affect their estate plan. In Oregon your will is revoked after marriage unless it was made in contemplation of the marriage. Additionally, most people think that if they divorce that their beneficiary designations are automatically changed when their divorce is final. However, in Oregon, although your provisions in your will are revoked as to your divorced spouse, your beneficiary designations do not change at divorce unless you execute a document to change your beneficiary.

4. Your will or trust is not consistent with your other beneficiary designations.

It is important to understand that your will or trust does not control how assets that are jointly titled or have beneficiary designations are distributed. In other words, you want your three children to inherit equal shares of your estate, your will provides that at your death your three children will receive equal shares of your estate but the bulk of your assets are in your 401(k). You name your eldest child as beneficiary of the 401(k). That child will receive all of the proceeds from your 401(k) even though your will provides that the assets subject to probate will be distributed equally among your children.

5. You do not have an advance directive or power of attorney.

If you become unable to make your own financial or health care decisions, trusted persons that you have appointed under your advance directive or power of attorney can make those decisions for you. If you have not executed those documents, it may be necessary for a guardian or conservator to be appointed by the court to represent you.

6. You have an estate worth more than $1 million dollars and you have not done estate tax planning.

There is an Oregon Estate Tax on assets greater than $1 million and a Federal Estate Tax on assets greater than $5.43 million. If you have proper planning in your trust or will, you can double your exemption if you are married. If you are single or married you may want to gift assets out of your estate to individuals or charities to reduce your estate tax liability.

7. Failing to fund your revocable trust.

Many people fail to fund their revocable trust. You should make sure that your assets are transferred to your trust and the beneficiaries of your life insurance and retirement accounts are updated. Otherwise, your estate plan will not be effective.

8. Do it yourself estate planning.

Using do it yourself forms for estate planning is not a good idea because they are often not specifically geared to address the nuances of your situation. As an example, if you have raised your husband’s children as your own. The do it yourself form provides that your assets will be distributed to “your children” at your death. However since your husband’s children are not legally your children, they would not receive anything.

9. Owning bank accounts jointly with your child.

Although this can work in certain situations, placing your child’s name on your bank accounts is generally not a good idea. My clients often do so for ease of transaction. However, if that child has a judgment against them, that creditor could garnish your account. If they are involved in a divorce, their spouse can claim a right to your assets. Additionally, when you die, if only one child is a co-owner of your account, they would receive all the funds in that account and that child is not required to share the funds with their siblings.

10. Choosing the wrong fiduciaries.

People often choose the wrong fiduciaries to act as their personal representative, successor trustee, attorney in fact or health care representative. These representatives should be someone who is responsible, caring and will look out for your best interests and the best interests of the beneficiaries.

People often wait to prepare or review their estate until an emergency arises. The benefit of estate planning is that it is a proactive choice that people can make to provide and protect themselves and their loved ones. So if any of the above apply to you, you should proceed with preparing or reviewing your estate plan.