As you look to the future, you likely believe you will not truly have to worry about your estate plan for many years to come. However, you probably know it is wise to document your wishes.
There are many mistakes people make in their estate planning. Being aware of some common errors might save your loved ones some trouble in the event of your incapacity or passing.
3 ways to avoid mistakes in your estate planning
Once you establish your will, you might think you are all set. However, that is not necessarily the case. In order to keep your plan up-to-date as your life and wishes evolve, there are three things you might be wise to consider:
- Understand your estate plan. As you determine your wishes, choose guardians for your minor children and designate your assets, be sure you understand the actions you are taking. Ask questions during your estate planning process. And be clear on any steps you must take beyond signing your documents.
- Update your plan. Significant events in life can alter your plan. Perhaps you will have another child and would like to include them as a beneficiary. Or maybe you went through a divorce and need to alter your plans. In some instances, a beneficiary might pass away, and you may want to designate some of your assets to someone else. Along with changes in your income or net worth, significant changes in your family may be reason to examine your plans for potential updates.
- Discuss an inheritance with your beneficiaries. Leaving gifts to beneficiaries is extremely generous. However, some gifts may not fit into your loved ones’ plans or lifestyles. In instances of a home or property, communication can help avoid trouble among siblings once you are gone.
It might be difficult to consider a time when your loved ones would be without you. However, comprehensive estate planning can help you continue to care for your loved ones once you are gone.