When it comes to estate planning, many people do whatever it takes to speed up the process. While it’s not the most enjoyable thing you’ll do this year, the creation of a comprehensive estate plan will give you peace of mind.
Any estate planning mistake you make today can have an impact on you and your family in the future. Here are five mistakes that have plagued many people before you:
- Opting to live without an estate plan: Since you’re not required by law to create an estate plan, you may think it’s okay to put this off. Don’t take this approach, as it could cause trouble for your loved ones upon your death.
- Forgetting you have young children: If you have minor children, name a guardian. This person will care for them should you pass on before they reach age 18.
- Neglecting to update your estate plan: Your estate plan will call for changes as the years go by. For example, if you’ve created a living trust, active management is a must.
- Not planning for incapacity: A comprehensive estate plan is one that plans for disability, such as through the creation of a health care power of attorney.
- Choosing the wrong executor: This person is in charge of all things related to your estate upon your passing. When you choose the right person, you can be confident in their ability to make all the right decisions. You know your estate is in good hands.
Even though there are potential mistakes lurking, knowledge of the estate planning process can help you avoid them.