Estate planning requires a great deal of preparation. It is a complex process that invites various mistakes if it is done incorrectly. To help you prepare, we have provided a list of some of the most common estate planning mistakes and how you can avoid them.
Forgetting to Update Plans
Estate planning continues even after you’ve created a basic estate plan. As you continue through life your circumstances will change. Be sure to review and revise your estate plan if you move to a new state, if someone is born into your family or someone else passes away, if you or one of your family members is facing a crisis, or if your finances change drastically and before retirement.
Not Planning for Accidents
Another mistake people make is that they fail to prepare for accidents. This is mainly due to the fact that we typically do not think about being injured, falling ill, or going into debt. The current pandemic illustrates this point specifically. The sad truth is, is that we live in a world of unpredictability. We must be prepared in the event something does happen. Be sure to prepare your estate plan to handle any family crisis, emergency, injury, or extended hospitable stay.
Not Planning for Minors
One of the principal reasons that people form an estate plan is to support their children after their passing. Most people plan to grant their inheritance to their adult children. And while most beneficiaries are usually adults, the reality is there are cases of minors being beneficiaries. For this reason, it is crucial to put plans in place for minors. Be sure to state what they are inheriting and above all, remember to assign them a guardian. If you do not specify these plans in your estate planning, the court will decide who will guard your child, what they will inherit and court supervision will be required until the minor becomes of age of majority.
No Estate Plan
Surprisingly, the biggest mistake in estate planning is having no estate plan at all. Many people believe they are too young to need an estate plan while others still are confused about what an estate plan even is. Some people say that they do not have enough assets to justify selecting a beneficiary. Others say that estate planning is too expensive. While these are all valid questions and concerns, they do not justify avoiding creating your estate plan. Estate plans are essential to maintaining and protecting your estate and family during and after your life.
If you have made any of these estate planning mistakes, or if you still have yet to make an estate plan, please do not hesitate to contact our office here. At Piercey & Associates, we are prepared to handle any estate planning concerns you may have. When you are preparing for your future and the future of your beneficiaries it is crucial that you make your plans thoroughly, completely, and correctly. If you have any additional questions submit them using the form below.