As you become familiar with the most common estate planning mistakes, you'll find it easier to avoid them. By doing so, you'll feel better about your current situation as well as what will happen upon your passing.
Here are five of the most common estate planning mistakes:
- Thinking you don't need one. It's easy to talk yourself into thinking you don't need an estate plan, but this is a decision you'll regret in the future. Take action to put your mind at ease.
- Forgetting to update your estate plan. Creating an estate plan is a good start, but you also need to update it as you age and/or your circumstances change.
- Neglecting to plan for disability. Your estate plan should also protect you in the event that you become disabled. One way to do this is by creating a living trust.
- Selecting the wrong executor. The person who manages your estate upon your death is known as the executor. Choose wisely, as they're staffed with many responsibilities.
- Overlooking the importance of naming a guardian. Don't assume your children will be taken care of by someone close to you if you pass away. Name a guardian to ensure that the right person steps in to raise your children until they reach the age of 18.
These are among the most common estate planning mistakes. Fortunately, they are easily avoided with foreknowledge and advance planning.
The best way to avoid these mistakes is to dedicate the necessary amount of time to the estate planning process. Taking sufficient time now to consider the way various scenarios could affect your estate and its beneficiaries can put your mind at ease.