The majority of people can benefit from having an estate plan. It will allow you to choose who you want to receive your assets when you die. You can also include any other wishes you may have in your plan, such as who you want to take care of your minor children if you die suddenly. However, many people mistakes during the planning process, which end up costing them money and leading to headaches in the future.
Here are some common state planning mistakes to avoid:
Not Updating Your Will
If you experience a major life change, it is in your best interest to update your will. For example, if you get divorced, you will likely want to take your ex-spouse out of your will. If you don’t make the appropriate changes, your belongings could get into the wrong hands after you die.
Failing to Plan for Disability
While we’d all like to think that we will remain healthy and strong forever, it doesn’t always happen. That is why it is crucial to have a plan in place if you suddenly become disabled. If you fail to do this, it can have financial consequences. Appoint a power of attorney who will be in charge of making financial and legal decisions if you should ever become disabled.
Picking the Wrong Executor
When you are planning your estate, you must choose an executor to carry out your wishes after you die. Be careful about who you choose to handle your estate. For instance, you may think that your spouse is the person who should take this role. However, he or she might be too emotionally invested and might make the wrong decisions. It is a better idea to choose someone you are not so close to so that he or she can objectively handle the executor duties.
It is never too soon to have an estate plan in place. Many people say they are going to draft an estate plan but never get around to doing it. To avoid stress in the future, create a plan as soon as possible.
Not Hiring an Estate Lawyer
While it is possible to develop an estate plan on your own, it is not recommended. Estate planning can be incredibly complex, especially if you have a lot of assets or own a business. That is why you may want to consider hiring a reputable estate lawyer to guide you through the process. He or she can help you develop a plan that recognizes your wishes and minimizes estate taxes. Your lawyer will also be there if you need to make any update to your estate plan in the future.
Do not wait to start the estate planning process. Make an appointment to see an experienced estate lawyer today such as the Estate Planning Lawyer Sacramento CA locals turn to. You will feel so much more relieved after you do this. Many estate planning lawyers offer free initial consultations, so you have nothing to lose by discussing your situation with one.
Thanks to authors at The Yee Law Group for their insight into Estate Planning.