In short, estate planning is the process of making instructions for the management of your estate. Once you start making an estate plan, you will likely quickly realize that it is not as difficult as others made you believe.
However, it is easy to make mistakes when planning out your estate. Here are a few to avoid:
Leaving all of your assets to a single beneficiary
You could leave all of your assets to one person, such as a spouse, child or sibling. This would make the process easier and quicker for your beneficiary. However, you could outlive your beneficiary. If this happens, your assets may be dispersed to your next of kin.
If you want to help ensure your assets go to who you want, then it may benefit you to name more than one beneficiary.
Only focusing on estate distribution
While the main function of an estate plan is to manage your estate after you pass, it can do so much more. You could, for instance, name a power of attorney to handle your medical and financial affairs if you become incapacitated. Furthermore, you could also leave behind instructions for your long-term health care.
Leaving an estate plan unaltered for years
Many people create their estate plans and never consider altering them. Over time, their estate plan could become outdated. This could create some issues during the probate process. You may want to consider altering your estate plan every few years to add new assets and alter key roles.
You should feel safe knowing you are doing the right thing with your estate plan. You can reach out for legal guidance to learn more about the estate planning process.
