The biggest estate planning mistake you could make is not having one at all, so the first step is to create your plan. Unfortunately, there are still a few pitfalls you could suffer from while you’re creating your plan or even after your plan is finished. However, it is relatively simple to avoid any potentially damaging mistakes.
Estate planning takes time and effort, but it is by no means impossible or overly difficult. Here are a few mistakes you should be aware of so you can avoid creating more problems and solidify your estate plan.
Choosing the right people
Your estate plan is not only about your assets, but about the people in your life. Because of this, you should not overlook the importance of picking the right people to help create and benefit from your estate planning.
You will want to consult an experienced attorney when creating your estate plan. Estate planning can be complicated so you will want to have someone who knows how to navigate the many details of this process.
Not only should you be careful when selecting the people who help you make your plan, but you should put thought into who will receive what from your planning. Choosing the right beneficiaries is an important part of the process. You want to pick people who will carry out your wishes the way you intend.
Another particularly dangerous mistake people make is forgetting your estate plan after it is created. Though you might want to put it aside after it is finalized, your estate plan needs to be regularly reviewed and updated. Tax laws change and your life may change at some point and your estate plan should reflect this. If you get married or divorced, have a child or a there is a death in your family you may need to update your plan. A large inheritance or starting a business is another reason you may need to make changes to your estate plan.
These are just a few potential mistakes people make when creating their estate plan. You will want to be careful to avoid these so you can ensure your estate plan is effective. An effective estate plan is one of the best ways you can protect your family.