While most people realize that estate planning is a must, they don't want to put too much time and energy into the process. Instead, they hope to create an estate plan and move on with their life as quickly as possible.
If you don't put the right amount of time into estate planning, you could end up making a mistake that costs you and/or your family time and/or money.
Here are five estate planning mistakes to avoid:
- Thinking it's okay to not create an estate plan. You don't have to create an estate plan by law, but it's a good idea to have one in place.
- Neglecting to update your estate plan. There will be times when you have to alter your estate plan, such as if you marry, divorce or bring a child into the world.
- Forgetting to plan for a disability. Your estate plan should touch on more than what happens to your assets upon your death. It should also help plan for a disability, such as through a power of attorney.
- Forgetting that gifts can help reduce your estate tax. It's not the right approach for everyone, but it works well for many people.
- Selecting the wrong executor of your estate. You need to carefully consider all your options, as choosing the wrong person can lead to trouble down the road.
It's not always easy to avoid these five estate planning mistakes, but taking the right steps at the right time will help you realize what you should and shouldn't be doing. Once you have a comprehensive estate plan in place, you'll feel like the weight of the world has been lifted from your shoulders.
Source: FindLaw, "Ten Common Estate Planning Mistakes to Avoid," accessed June 01, 2018