Estate planning is something that all adults need to handle, but it’s often put off because it’s not really a pleasant task. One of the biggest errors you can make is avoiding estate planning because that takes away your chance to make your wishes known and can make things more difficult for your loved ones after you pass away.
Once you decide to get the estate plan set up, it’s critical that you get everything done properly. There are a few specific errors that you should ensure you avoid.
Error 1: Duplicating assets
Each of your assets should only be included once in your estate plan. Assets that are in trusts, including financial accounts that are covered by a Totten trust, shouldn’t be included in the will.
When an asset is put into the estate plan twice, there’s a chance that conflicting instructions or designations may lead to problems. This may cause the estate to take longer to go through probate, which can lead to delays for your loved ones and could lead to increased expenses.
Error 2: Failing to update the plan
Your estate plan isn’t a once-and-done undertaking. You have to take the time to update it. Some situations that should lead to a review of the estate plan include:
- Marriage or divorce
- Death of anyone named in the plan
- Birth or adoption of a child
- Major asset purchases
- Asset sales
Even if none of those events happen, it’s best to take a look at your estate plan periodically. This helps to ensure that everything is still set the way you want it. This includes checking that everyone named in the estate plan is still living and that their role in the estate plan is what you intend.
Error 3: Avoiding making end-of-life plans
End-of-life plans are an important part of an estate plan because they let your family know your wishes if you can’t relay them at the time. These plans go into effect if you become incapacitated. You should have plans for your finances and for your medical care.
Ultimately, your estate plan should make things easier for your loved ones if something happens to you. Working with someone who can help you to get everything set in the proper manner is critical.
