Estate planning is key to protecting your loved ones should you become incapacitated or die. Your estate plan will include several documents that will protect your legacy and state your wishes. However, to significantly benefit from it, you should make the right moves.
This guide discusses three mistakes to avoid during estate planning.
Not seeking guidance
Undoubtedly, estate planning is a personal step where you state your wishes and distribute assets according to your criteria. However, it can be complicated, and one mistake may result in significant effects. For this reason, it will be best to work with professionals.
For instance, you should have a professional get accurate values of your assets. A tax professional can help you shield your beneficiaries from liabilities. Further, a financial advisor may recommend suitable strategies to achieve your goals, and an attorney can ensure your plan is valid. Working with these and other professionals can make your work more manageable.
Not including your assets
It will help to list all your assets and double-check to ensure they are in your plan. Examples of commonly forgotten assets are digital assets, family heirlooms, jewelry, artwork and life insurance policies. Not including assets in your estate plan and giving details on how to distribute them can lead to disputes.
Nonetheless, if you don’t want some of your assets to go to probate, a professional can guide you on the best ways to pass them to beneficiaries.
Not updating your will
Creating a will sooner is helpful. However, your life may experience changes, such as the birth of a child or grandchild, a marriage or divorce or the death of an involved party. In such instances, you should update your will accordingly.
You need to create a legal estate plan that protects your loved ones. It will help to learn more about estate planning to avoid mistakes.