Is estate planning at the forefront of your mind? Are you hoping to make your way through this process in the near future? Do you need to make some adjustments to the plan you already have in place?
Since estate planning is so important, you need to do whatever it takes to avoid a mistake. Unfortunately, a single mistake, even if it doesn’t seem like a big deal now, can impact you and your loved ones at some point in the future.
As you learn more about the most common estate planning mistakes, you can implement a plan for preventing trouble. Here are a handful of mistakes that have plagued others, but can be easily avoided with the right strategy:
- Thinking that you don’t need an estate plan. While the law does not require it, an estate plan will give you peace of mind. It also helps ensure that the right people end up with your assets when you pass on. Not to mention the fact that you can also create documents that protect you in the event of incapacity.
- Forgetting to update your estate plan as you age. Imagine this: you create your first estate plan in your 20s or 30s and keep it in place for the rest of your life. This may work out, but there’s also a chance that changes are necessary as you age. Don’t forget to review your plan on a yearly basis.
- Overlooking the potential for a disability. Who will handle your finances or raise your children if you become disabled? What will happen if you can’t communicate your healthcare wishes on your own? There are estate planning documents, such as power of attorney, that can help with these types of things.
- Forgetting that your minor children could be left alone if you pass on. You need to name a guardian for your children, as you want them to be safe in the event that you and your spouse are no longer around to raise them.
As you can imagine, there are very many potential estate planning mistakes. These four are among the most common, so make sure you do whatever it takes to keep them on the outside looking in.
Once you know your legal rights and what you’re trying to accomplish, it’s much easier to create an estate plan that provides you and your family with everything you need.