When it comes to estate planning, the last thing you want to do is make a mistake. If this happens, it could have a negative impact on your family in the future.
Fortunately, even if you have made an estate planning mistake in the past, it doesn’t necessarily mean you can’t make things better in the future. It may take some time and money to make everything right, but it’s something you’ll want to do.
Common mistakes people make when thinking about estate planning include:
- Assuming only the wealthy need estate plans. There are many reasons for establishing an estate plan. Passing along value assets to heirs and other beneficiaries is only one.
- Waiting too long to create your estate plan. Many people put this off, assuming they will get around to it in the future. You don’t want to go down this path, as it could lead to a situation in which you wait a bit too long. Once you realize it’s time to create an estate plan, you should take immediate action.
- Forgetting to update your estate plan as the years go by. For instance, the will you create today may not work for you in the future. You need to review your estate plan annually, paying close attention to any changes you can make for the better.
- Neglecting to plan for a disability. There is more to an estate plan than thinking about what will happen to your assets upon your death. You also need to focus on what will happen if you face a disability or incapacity in the future.
- Choosing the wrong executor of your estate. This is a big decision, so you don’t want to choose just anyone. You need to carefully consider all your options.
- Forgetting to choose a guardian for your minor children. In short, you need to know that your children will be protected in the event that you and your spouse pass away while they are still young.
These are not the only estate planning mistakes to avoid, but they are among the most common. Take steps now to help ensure the financial well-being of your future and the future of your family.