The first mistake you could make is not having an estate plan at all. However, since you are reading this post, you can avoid this biggest issue. Unfortunately, though, there are many more mistakes people make when creating their estate plan.
Estate planning is a complicated, multifaceted process but with careful planning and consideration you can successfully avoid these mistakes.
Not having an attorney
As mentioned before, estate planning is complex. There are many laws and procedures you will need to navigate in order to create a solid estate plan. Having an experienced attorney with you can help you figure out this process and have an estate plan that works. The last thing you want is an estate plan that does not successfully accomplish what you want after you die.
After you complete your estate plan, you might want to forget about it. However, regularly reviewing and updating it is important in maintaining a successful estate plan. Any major life changes should prompt you to update your estate plan. Getting married or divorced, having a child, a death in the family or receiving a large inheritance will make you want to change or update your plan. You may need to update beneficiaries, assets and other components of your plan as time goes on.
Having an outdated plan can cause significant problems for your loved ones in the event of a tragedy. Regularly reviewing your plan is also smart so you can make sure your estate plan aligns with current tax laws.
Choosing the wrong executor
Picking the right executor of your plan is another important part of the plan overall. Your executor has a lot of responsibilities regarding your estate so you want to be sure the person you choose is up to the task. An executor is mostly responsible for carrying out your will after you die, so it is important to know that they know you well and will properly carry out your intentions.
As you can see, you will need to make many considerations when estate planning, all of which are important. Making these or other estate planning mistakes can be costly to your loved ones, so you want to make sure you are careful during this process.