You can often learn valuable lessons when you witness the mistakes that others have made. As an inheritance planning firm, we have certainly seen our share of them as you might imagine.
In this post, we will take a look at some of these errors so that you do not fall into the same traps.
Overlooking Long-Term Care Costs
Your legacy could be severely damaged or wiped out altogether if you face very large, unexpected expenses during the final period of your life. This type of scenario is going to be looming when you reach an advanced age because 35 percent of elders require nursing home care.
The annual charge for a nursing home in the Manhattan, NY area will typically be well over $170,000, and the average length of stay is 12 months. A married couple may be forced to pay two different sets of nursing home bills, so we are talking about some relatively big digits.
Medicare will not help, but Medicaid will pay for the custodial care that nursing homes provide. You could establish an irrevocable Medicaid trust to develop a financial profile that will lead to eligibility, but you have to fund the trust at least five years before you apply.
If you violate this five-year look-back rule, you are not necessarily permanently ineligible, but your eligibility would be delayed.
DIY Inheritance Planning
Some websites sell generic, boilerplate legal documents, including wills and trusts. It is technically possible for a layperson to create a legally binding document, but do you know why you may want to use a trust instead of a will?
Are you aware of all the different types of trusts that can be used? Are there any important details that a layperson would never consider?
When you plan your estate, you are giving final gifts to the people that you love the most. There is a huge emotional component, and these transfers have significant monetary value.
There is really no reason to take chances with do-it-yourself documents when qualified legal help is readily available.
Relying on the State to Take Care of Everything
Some people simply ignore estate planning altogether because they think the state will take care of everything. It is true that the probate court will supervise the estate administration process if you pass away intestate.
After final debts are paid, the assets would be distributed under the intestate succession laws of the state of New York. However, there is a chance that people that you would not intentionally exclude would be disinherited or receive less than you would have provided for them.
Failure to Include an Incapacity Plan
The financial part of the equation is certainly at the root, but your estate plan should also address end-of-life eventualities. You should create a living will to express your organ and tissue donation choices and your life support preferences.
For decisions that are not related to life support, you can name an agent in a durable power of attorney for health care. Another durable power of attorney can be added to account for financial decision-making.
When you learn about the benefits, you may decide to use a living trust as the centerpiece of your estate plan. If you have this type of trust, you would act as the trustee while you are living, so you would not lose control of the assets.
You could name a disability trustee in the trust declaration to assume the role if it ever becomes necessary.
Attend a Free Webinar!
We are holding a number of webinars over the coming weeks, and you can learn a lot if you join us for one of these sessions. There is no charge, but we ask that you register in advance so we can reserve your spot. You can see the dates and obtain further information if you head over to our Manhattan, NY estate planning webinar schedule page.
- Are You Prepared for Long-Term Care Costs? - August 15, 2026
- How Often Should I Review My Estate Plan? - August 1, 2026
- What Happens When an Executor and a Beneficiary Disagree? - July 15, 2026
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