For many people, estate planning is often pushed to the back burner. There are simply other, more important things to do than thinking about what is going to happen once you die.
However, skipping or even botching your estate planning can lead to serious consequences, both for yourself and your loved ones who have to deal with your estate once you have passed.
While executing state planning might seem pretty straightforward, there are many common mistakes that people make time and time again. This post will examine these mistakes so you can avoid them.
Skipping it altogether
Only 33% of American adults have basic estate planning documents in place. These are things like a well-trusted power of attorney or even a living will. This means that two-thirds of families will potentially be scrambling through legal uncertainty if something were to happen, to a loved one who does not have any type of estate planning in place. You want to avoid the potential chaos and stress for your loved ones in such a situation at all costs.
Waiting for the right time
There is never the right time to carry out estate planning. And a dangerous trap to fall into is thinking you will get to it later. According to Mazenko Law Firm, 43% of Americans said procrastination is the most significant barrier ot finalizing a will. This is extremely dangerous because if you are in this position with an illness that is potentially life-limiting, and you are unable to put in place the plans, you may never get around to finalizing your financial and medical preferences.
Only writing a will
Another big mistake people make is only writing a will. A will is a great start and a great thing to have; however, it’s not always enough, especially for people with more extensive assets and estates. Alongside a will, you also need things like healthcare directives, a power of attorney, and a trust for asset protection. Understanding the need for these additional documents will make you feel more informed and prepared for any eventuality.
Neglecting beneficiary designations and asset titles
Things like your life insurance, IRAs, and investment accounts often bypass a will. These will go directly to the named beneficiaries. It is really important that all of these forms are updated and filed correctly because if you overlook this aspect, your assets might go to the wrong person or get tied up in probate, and your wishes may not be honored due to outdated information. Taking responsibility for these tasks will ensure your wishes are respected and your loved ones are cared for.
Not looking at all of your options
Traditional estate planning is still an excellent way to put plans in place in the event of your death; however, you must look at all of your options, not just traditional ones. Alternatives like karmic legacies provide a spiritually aligned state planning option, for example, eco-friendly burials, charitable giving, and ethical legacies for those who want more purpose from their legacy and to create something that is longer-lasting.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
