Creating a thorough estate plan can give you peace of mind, protecting your assets while ensuring that your loved ones are taken care of in a way that you want. Yet, the estate planning process isn’t as easy as some would have you believe.
Sure, you can pass your wealth down by using a will, but, depending on your circumstances, this document, when used alone, might create problems that you’d otherwise want to avoid. Also, simply relying on a will might not give you the flexibility and control that you want over your assets and your beneficiaries’ inheritance.
That’s why it’s important that you understand your estate planning options as well as the mistakes that you can make along the way. That way you can be sure to avoid them as you move through the process. This will hopefully give you the effective plan that you want to protect your vision of the future.
You have to be careful as you navigate the estate planning process so that you don’t inadvertently step into a pitfall that jeopardizes the validity of your plan. Here are some of the biggest mistakes that you’ll want to be aware of and avoid moving forward:
- Procrastinating: A lot of people think that they can avoid estate planning until they’re older. But you never know when your health will take a turn for the worse. And if you don’t have an estate plan in place when the time comes, then your assets might be eaten up by the probate process, and your assets will be distributed according to state law. That might not align with what you want out of your estate plan.
- Failing to modify: Your life’s circumstance can change over time. If you don’t modify your estate plan to reflect changed relationships and the acquisition of large assets, then your family can end up fighting over your assets, and your hard-earned wealth might wind up in the wrong hands. So, be sure to revisit your estate plan periodically to ensure it still meets your estate planning goals.
- Neglecting to discuss your plan with loved ones: It’s common to feel uncomfortable talking about your death and your estate plan. But discussing it with your loved ones can be crucial, as it can set expectations and even reduce the risk that your plan will be challenged later on. You might even gain support from your loved ones who want to help you create a plan that’s right for you.
- Overlooking long-term care: Your future need for long-term care is real. If you don’t plan for it, then the costs associated with it can quickly eat away at your estate, leaving you with far less than you expected to pass down to your loved ones. You’ll also want to create a power of attorney and a health care directive to ensure that someone you trust is making decisions on your behalf if you become incapacitated.
Create the strong estate plan that you and your loved ones need
There’s a lot that goes into the estate planning process, but don’t let that scare you. Instead, use it to motivate you to create the plan you need now so that you don’t have to worry about it later. If you’d like to learn more about what you can do to protect your estate, your interests, and your loved ones’ financial well-being, then now is the time to read as much as you can about the estate planning process.