Common Estate Planning Mistakes You Should Avoid
How can you best put together your estate plan to make sure it protects your assets for your family? And just as importantly, how can you arrange your estate plan to make sure you avoid causing any dysfunction among your loved ones after you pass away?
The following are a few common mistakes that often get in the way of good estate planning:
- Failure to plan for incapacity. Wills take care of your affairs after your death, but what if you are incapacitated for a period of time before then? Your trustee can manage your trust until you make a recovery. Otherwise, you should make sure you have updated health care directives and power of attorney to cover you in a worst-case scenario.
- Failure to keep an updated will. There are so many changes that can happen in your life within even just a couple of years. Every time you experience a major life change, you should make sure to edit your will to ensure it stays up to date. Having an outdated will may, in some cases, be nearly as troublesome as not having a will at all.
- Not putting contingent beneficiaries on retirement accounts. What happens if your primary beneficiary for your retirement account should die before you? You should always choose contingent beneficiaries who can inherit your account if your primary beneficiary passes away.
- Procrastination. It’s understandable if you feel stressed or uncomfortable with the idea of putting together an estate plan. But believe us — you are saving yourself and your loved ones a great deal of time and energy by getting it done early and then revisiting the plan every now and then to make any necessary updates.
To learn more about estate planning and how to avoid some of these key mistakes, speak with a dedicated Clearwater attorney at the Charles Law Offices.