Estate planning is something that people sometimes associate with older adults; however, all adults should have their plan in place. There are several things that you need to think about. You may realize that you need a will, but that’s not all there is to estate planning.
As you’re working to get your estate plan in order, there are some errors that you need to avoid making. These are some of the more common ones that occur.
Error #1: Never updating the plan
Your estate plan should be reviewed every year or two. You also need to check it if something major happens in your life. These circumstances include getting married or divorced, having children, your children becoming adults, someone named in the plan passing away or changes in assets.
Error #2: Avoiding tax planning
As you’re creating the estate, you need to think about what types of taxes your loved ones will have to pay. If you’re tempted to pass along assets before your death, find out if the beneficiary will have to pay a gift tax. In some cases, it’s best to use trusts or make smaller gifts to give out assets.
Error #3: Naming assets twice
Only name assets once in your plan. Remember, financial accounts are usually governed by a payable on death designation so you don’t need to include those in the estate plan at all.
People who need to create an estate plan should ensure they familiarize themselves with the tools they have available to convey their wishes. Getting everything set so that those wishes can be carried out with as little effort as possible enables your loved ones a chance to grieve your death without having an impending legal battle. Someone who’s familiar with this area of law can assist you in getting everything in order.