There is never a good time to make an estate planning mistake. It only takes one of these to cost you serious time and money, and that's not a situation you want to find yourself in.
Fortunately, once you are familiar with the most common estate planning mistakes, you can formulate a plan for avoiding these at all times.
So, with that in mind, let's examine five common estate planning mistakes that have plagued others before you:
- Neglecting to create an estate plan. Above all else, it's imperative that you create an estate plan at the appropriate time.
- Forgetting to make changes as the years go by. There will be times when you need to update your estate plan, such as after tying the knot or going through a divorce.
- Forgetting to plan for an incapacity. There is a chance that you could become incapacitated in the future, due to an injury or illness. You need to have a plan in place just in case this happens.
- No guardian. You need to name a guardian for any minor children. This will give you peace of mind in knowing that your child will be in good hands if you and your spouse are no longer around.
- Choosing the wrong person to act as the executor of your estate. This person will have many responsibilities, so you need to think long and hard about who makes the most sense.
These are the types of estate planning mistakes that you should avoid. When you feel good about the plan you have in place, it's much easier to live your life with a clear mind.
The best thing you can do right now is review your estate plan, learn more about the laws in your state, and consider if any changes are necessary.