Whether you are a first-timer or updating an old estate plan, you want to ensure everything goes smoothly. However, it is easy to forget certain things. If you know common mistakes people make when estate planning, you will be less likely to make them.
Here are some common mistakes you could make when creating an estate plan.
Failing to create a plan
The biggest thing you can do wrong is not create an estate plan. While many people put this off, failing to plan puts your loved ones’ financial futures at risk.
Not talking to family and friends
Make sure you talk about your plan with your family and friends. That can make sure everyone understands your wishes, so there is less of a chance for contention. If you cannot speak to a specific friend or family member, write into your plan that anyone who contends it is automatically written out.
Naming one beneficiary
It would be best to always designate multiple beneficiaries for all your assets. For example, if a beneficiary passes before you, you want to know that a backup is in place. Therefore, the second person you name should be your second choice for that asset. In addition, it would be best if you designated multiple contingent beneficiaries.
Forgetting children’s futures
Even if you have the best intentions, your wording could impact your children’s futures. If you have young children, leave specific instructions for how the guardian spends their assets to care for them, and remember to plan for inheritance taxes.
Creating an estate plan is a great thing to do. However, making any of these mistakes can cause your wishes to go haywire. In other words, make sure you do not miss anything. The perfect estate plan will allow you to fulfill your last desires.