Four Important Estate Planning Mistakes to Avoid
Estate planning is not only for the rich and famous. Indeed, most people have at least one or two assets that they want to leave for someone special.
A vehicle, music collection, parrot, holiday resort timeshare, books, furniture, jewellery, portraits, policies, homes, boats, shares, and more are types of assets. With estate planning, it is possible to at least state what should happen to your assets once you are no longer alive. To help you get started on estate planning, let us look at some of the common mistakes to avoid.
Not Doing Any Type of Planning
Death is inevitable. Not planning for the distribution of your assets, care of your children, and covering of the expenses related to your estate is the biggest estate planning mistake possible. At the very least, you should have an updated will, kept in a safe place. The original should be stored in a safe at your bank or attorneys. Dying without a will means the state will decide on the distribution of your assets and care of your children.
Not Regularly Updating Your Will
The second biggest estate planning mistake to avoid is that of sticking with your original will without regularly reviewing it and updating it to reflect your current financial and personal situation. If you have recently bought a house, you have to make sure your will is up to date to reflect who should inherit the home in case you pass away. Your wife may also stay in the house and without a will in place, she may very well end up without a place to stay.
Not Considering the Possibility of Long-Term Disability
Nobody wants to think of possibilities, such as becoming disabled after a vehicle accident or losing eyesight because of a disease. It is a very real risk regardless of your age and current health. You need to consider how your finances will be managed, who will take care of your children, who should take over your company, and who should have the power of attorney to make decisions on your behalf if you should lose the ability to do so yourself or without help from another person. Estate planning that makes provision for such unforeseen circumstances should be a priority.
Entrusting the Responsibility of Managing Your Estate to the Wrong Person
Do not select a person to be executor of the estate because of your relationship. Your husband may seem like the best person for the responsibility, but being so personally vested can be problematic when it comes to important decisions. Rather appoint attorneys experienced in estate planning to ensure objectivity and compliance with all legal requirements.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing