Thinking about your own mortality may be something you often try to avoid, but it’s important to be prepared with the necessary documents in case anything happens to you. In this article, we’d like to review some common mistakes that people often make during estate planning and explain how you can avoid them.
Mistake #1: Neglecting to create a plan. It’s common to think that estate planning is only for the elderly and wealthy, but it can be beneficial for younger folks to create an estate plan as well. That way, you can be prepared for any unplanned incidents and develop a clear plan for the distribution of your estate and assets. Even if you don’t have your own estate right now, you can still plan for important things like guardianships for children and pets, healthcare directives, digital asset protection, and more.
Mistake #2: Failing to update your documents. Another common mistake is thinking that the estate planning process can be completed once and left alone for the rest of your life. However, this could be problematic if you experience any major life changes that could affect your estate plan. It’s recommended to review and update your documents every few years to ensure that it still aligns with your wants and needs.
Mistake #3: Failing to address taxes and loans. If you forget to address taxes and debts, the financial burden may be left to co-signers and inheritors of your estate. It’s important to account for such taxes on any inheritance and the management of debts to prevent financial strain on others upon your passing.
You can give us a call if you would like to learn more about estate planning.