Creating an estate plan is one of the wisest actions possible for preserving your legacy. Putting one together means assets have protection and will wind up in the right hands after you are gone.
Many estate plans have errors that ruin their intentions. The more aware you are of the pitfalls, the more likely your estate plan will be flawless.
Pitfall #1: Naming one beneficiary
Only designating one individual to inherit your assets is a mistake. If the person you wish to pass wealth to expires, there needs to be a secondary recipient. Name several contingent beneficiaries for extra security.
Pitfall #2: Forgetting digital assets
Banking is becoming increasingly electronic. Your estate plan should have details on handling these monies. Social media accounts will languish if you fail to provide instructions. Whether you want yours thrown down the memory hole or to have someone specific take over is up to you. Either way, include directives on what to do with your posthumous digital presence. Many platforms have legacy settings.
Pitfall #3: Neglecting charities
Those without vast riches often want to bequeath a gift toward causes of importance. You can, too, even if you lack an investment worth gifting to a nonprofit. Earmark the proceeds from a life insurance policy to go directly to an organization. There is comfort in knowing that, after you are gone, progress will continue on matters dear to your heart.
Estate plans can have many moving parts. Making certain yours covers every area of concern is vital. Avoid common mistakes so that yours is complete.