Many people mistakenly believe that estate planning is either unnecessary for them or much simpler than it actually is. Unfortunately, this often leads to costly errors that can jeopardize their future and the well-being of their loved ones. If you want to avoid these common pitfalls, keep reading to learn about estate planning mistakes that you’ll want to avoid.
Estate planning errors that could derail your vision of the future
The estate planning process is much more nuanced than people realize. As a result, there are several inadvertent mistakes that can be made along the way that can put you, your estate and your loved ones in a difficult position.
These include each of the following:
- Procrastinating: One of the most significant mistakes made is delaying the creation of an estate plan. Wait too long, and it may be too late to act on your wishes, leaving your estate vulnerable to high long-term care costs and resulting in assets being distributed according to state law rather than according to your wishes.. So, don’t wait too long too long to get your estate plan together.
- Failing to update an estate plan: Creating your initial estate plan is an important milestone—but it should not be the final step.. Life circumstances can change in ways that necessitate modification of your estate plan. Failing to update your existing estate plan after significant events such as changes in family dynamics, births, deaths, divorces or the acquisition of new assets, can lead to unintended consequences. Without timely updates, parts of your estate could fall into the hands of those you never intended to inherit from you in the first place.
- Neglecting long-term care: Estate planning isn’t just about figuring out how to divide your assets once you pass away. It’s also about protecting your financial and health-related decisions as well as covering your long-term care costs. This is important considering that there’s a possibility that you’ll need long-term care at some point in your life, and the expenses associated with it can be extensive. Fortunately, you might be able to protect your wealth more fully by engaging in effective long-term care planning.
- Trying to create your estate plan on your own: While numerous self-help guides claim to provides the tools necessary to create your own estate plan—and may seem like a way to save time and money—taking the DIY approach comes with significant risks. Without proper legal guidance, you may overlook critical details, face unexpected complications, or incur greater costs in the long run. More importantly, you could miss valuable opportunities to structure your estate plan in a way that truly aligns with your goals and protects your legacy.
Create the strong, error-proof estate plan you want, need and deserve
Your estate is precious, and the creation of your estate plan should be treated as such. Therefore, when it comes time to draft your estate planning documents, you should be careful and seek out guidance from those who able to answer any lingering questions that you may have. That way you can confidently move forward with the process while being able to make the fully informed decisions that will protect your vision of the future.