Are you making estate planning errors?
Creating an estate plan is a task everyone needs to complete. Although it can be difficult to think about, you need to make a plan for the end of your life and what will happen after your passing.
However, there are several common mistakes many people make with their estate plans. If you are not careful, your assets can be taken from your intended beneficiary, your will might be outdated at the time of your passing, and more.
For these reasons, knowing the common mistakes and how to avoid them is key. If you are thinking of estate planning and want to avoid these mistakes, this short and simple guide is for you.
Naming One Beneficiary
One of the most common estate planning mistakes is to name one beneficiary. This is not ideal because a beneficiary can pass away before you do.
To avoid this mistake make sure to name a contingency beneficiary for all of your assets. If you need to find an estate planning lawyer, consider looking for expert legal help.
Failing to Plan for Your End of Life
When you think of estate planning, you likely think of leaving your assets to a beneficiary. However, estate planning involves making plans for how you want to spend your final days. To avoid this mistake, make sure to complete your end-of-life planning.
Failing to Make Your Final Arrangements
Another common mistake is failing to make your final arrangements. Ideally, you should make your wishes known for your funeral arrangements, burial plot, and more. Make sure you make these arrangements as part of your state plan.
Forgetting About Taxes
If you are not careful, your estate tax liability can greatly reduce the inheritance you leave for your beneficiaries. To avoid this problem, make sure you understand and plan for state and federal taxes while creating your plan.
Not Discussing With Your Family
Although discussing your estate plan with your family can be tricky, it’s not something you can afford to avoid. While you don’t have to go into the specifics, consider giving a close and trusted family member a general overview of what will happen after you pass away.
Having an Outdated Plan
One of the most common estate planning mistakes to make is not updating estate plans. Your estate plan should be created as soon as you have assets, which can be decades before your passing. For this reason, consider updating your estate plan every few years.
These Are the Common Estate Planning Errors to Avoid
There are several estate planning errors you need to avoid.
Make sure you are not naming one beneficiary or failing to plan for the end of your life. You should also avoid failing to make your final arrangements or forget about taxes. Having an outdated plan and not having a plan at all are also mistakes to avoid.
Make sure to avoid these mistakes when estate planning.
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