Do you know that estate planning is one of the important steps to make sure your wishes are followed and your loved ones are taken care of after you’re gone? But there are many people available who make these mistakes that can cause problems for their family as well as friends. These mistakes can lead to confusion and even financial losses.
So, if you know what these common mistakes are and how you can avoid them, you can make a solid estate plan. Therefore, let’s discuss the most common estate planning mistakes and give you some simple tips from the experts in estate planning on how to avoid them.
Top 5 Estate Planning Mistakes You Should Know
Estate planning is very important, but as we told you earlier, many people make mistakes that can cause problems in the future. As a part of the estate planning expert tips, here you will get the top five estate planning mistakes you should avoid to ensure your wishes are honoured, and those are:
1. Not Having a Plan
One of the big mistakes is not having a proper estate plan at all. If you do not have a plan, then the state will decide what happens to your things, and it might not be what you want. Therefore, to avoid this, you need to make a simple estate plan that should include a will, a power of attorney, and a healthcare directive.
2. Not Planning for Disability
Estate planning is not just about what happens after you pass away. It is also about what happens if you become disabled. Therefore, you always need to make sure that your plan includes documents like a durable power of attorney and a healthcare directive to handle your affairs if you are unable to do it.
3. Overlooking Beneficiary Designations
The people you name as beneficiaries on your retirement accounts, life insurance policies, and other financial accounts will get those assets. No matter what your will says. You need to make sure that these designations are up-to-date and match your current wishes. Besides, you can review them regularly, especially after major life changes.
4. Failing to Name Contingent Beneficiaries
One mistake that most people often make is not naming contingent beneficiaries. These are the people who will get your assets if your first choice can’t. Therefore, if you do not name them, your assets may need to go through a long and costly legal process. In that case, to avoid this, please make sure you name backups for all your accounts and policies.
5. Listing Your Child on Your Home Deed
To make things easier, some parents add their child’s name to their home’s deed if they pass away. But do you know that this can cause problems? If your child has any financial or legal problems, your home might be at risk. Moreover, it can also lead to tax issues. In this situation, a better option is to set up a trust to pass on your home safely to your child without these problems.
Bottom Line
Avoiding these common estate planning mistakes can help ensure that your wishes are followed and your loved ones are taken care of. If you’re unsure where to start or need help updating your plan, please get in touch with Expat Wealth At Work now. Our experienced team can help you create a clear and effective estate plan as per your unique needs. Furthermore, we will walk you through each step, from draughting your will to updating your plan as your circumstances change.
So, contact us today to schedule a consultation and take the first step towards securing your future.