When it comes to estate planning it's not always easy to make the right decisions at the right time. In addition to federal and state laws, you're staffed with the responsibility of making choices that are best for you and your family.
Even though there are many potential estate planning mistakes hanging over your head, you can avoid all of these with the right approach. Just the same, even if you make a mistake you can always rectify the situation in some way, shape or form.
Here are seven estate planning mistakes that can be easily avoided:
- Forgetting to create an estate plan: No one really forgets to create an estate plan. Instead, they put it off for too long and eventually assume it's not something they really need.
- Neglecting to make changes: Creating an estate plan is only the start. You may need to alter your plan over the years, so don't hesitate to conduct an annual review with this in mind.
- Not planning for a future disability: You hope you never face a disability down the line, but you need to realize that this is possible. When you plan in advance, you know you'll receive the right care if this occurs.
- Overlooking the impact of estate tax: Don't forget about this, as doing so could cost your loved ones a lot of money in the future.
- Choosing the wrong guardian: If you have minor children, you need to choose a guardian. And not just any guardian, but someone you trust to raise your children should you pass on.
- Choosing the wrong executor: You have the right to choose almost anyone to be the executor of your estate, so make sure you consider all options. This person has many responsibilities, so don't make a rash decision.
- A DIY approach: Even if you think DIY estate planning will save you time and money, it's a risk that could cost you in many ways over the long run.
These are the types of estate planning mistakes you can avoid with the right approach.
As long as you know your legal rights, the law that governs your situation and the goals you want to accomplish, you can create an estate plan that gives you peace of mind.