Many of us know the importance of having an estate plan. Your estate plan can address many issues, and protect your family and preserve your assets. Despite planning for the future, mistakes in your estate plan can cause a lot of headaches in the future, as well as fail to protect your loved ones.
Working with an attorney can help protect your estate. An attorney can review your estate plan and make sure everything is up-to-date and accurate. You should review your estate plan any time your family changes or at least every couple of years to keep yourself and your family protected.
Do you know the most common errors made in estate plans? If you don’t, you are not alone. Many of us fail to recognize the dangers common mistakes can have on the effectiveness of your estate plan.
Below are the list of most common mistakes people make in their estate plans, and how to avoid making those same errors:
- Not planning at all or failing to update your estate plan. This mistake is easy to avoid by creating an estate plan and reviewing it every few years to make sure it is up-to-date.
- Failure to consider the tax implications. Estate taxes can significantly impact your asset preservation goals. Consider working with an attorney and financial planner to protect your goals.
- Naming a family member as the executor or trustee. This person is responsible for administering your estate and needs to be handled properly. Naming a relative can cause a lot of stress for that individual as well as lead to disputes between family members. Consider using a professional instead.
Avoiding these mistakes can make your estate plan much more efficient and protect your loved ones after you pass away. While it can be difficult to plan for the future, understanding the common mistakes people make and taking steps now to avoid those mistakes can make life easier for everyone in the future.