On its face, the estate planning process might seem straightforward. You create a will, maybe a trust or two, and then sit back and take it easy. Or you might think that your estate and distribution plan is so simple that you can forego estate planning altogether. But those may not be your best options.
Avoid major mistakes in your estate plan
There are major mistakes that you can make along the way that can leave your assets and your loved ones at risk. Let’s look at some of them here:
- Not planning: Foregoing estate planning altogether leaves the distribution of your estate in the hands of state law. This means that those who you intend to inherit from you might miss out.
- Picking a bad executor or trustee: You can choose those who will be responsible for managing your estate. If you pick the wrong person, then your estate could be mismanaged, which can be costly to your estate and your loved ones.
- Failing to modify: Life changes, and so should your estate plan. Therefore, you should revisit your plan periodically or after major life events to ensure that you’ve covered all of your assets and have proper beneficiary designations.
- Not fully considering your options: There are a lot of estate planning tools at your disposal. This gives you a great opportunity to create the plan that’s right for you, your estate, and your loved ones. If you don’t know about those options, though, you could miss out.
- Failing to consider other aspects of estate planning: Sure, a lot of estate planning focuses on wealth distribution, but your plan should also lay out how important health and financial decisions are going to be made if you become incapacitated.
Don’t lose out by creating a lackluster estate plan
The estate planning process can do a lot for you and your family. That’s why now is the time to educate yourself about the process and your planning options. Hopefully then you can move forward confident that you’re protecting yourself, your estate, and the future as much as possible.
