If you are looking to get your assets in order and don’t want any issues, then you have come to the right place. With the world around us constantly shifting and changing it is important to be adaptable and have a plan for the future. Making these important decisions about who will inherit your property is essential to make sure your will is carried out and distributed the way that you want it to be. No one is too young or exempt from making these plans so let’s take a look at some of the common mistakes that people make and how to avoid them.
Not Creating a Plan in the First Place
To begin, the first mistake is the most obvious and that is not having a plan at all. It is easy to want to put off this depressing task and not think about it, but not coming to a decision means risking your estate which could wind up hurting your friends and family. No matter how wealthy or how many things you have, it is important to make sure you have an idea of where and to whom you would like your belongings to go. It’s essential that you sit down and take the time to draft and get a plan set in place.
There are many tools you can use to make this process run smoother. You can use apps to create lists and store your essential paperwork for easy access and management. Another resource that shouldn’t be overlooked is working with an estate planning attorney. Using their years of experience in real estate law and technological resources like flowchart estate planning software, the right attorney can take the stress out of getting your affairs in order.
Not Talking to Friends and Family Members
Surprisingly, when it comes to estate planning, many people do not talk with friends, family, and other individuals who will be impacted. Nobody likes to have talks about the end of their life, but it is important to have these tough conversations to set clear expectations so nothing comes as a surprise when the time comes. Additionally, having these discussions will help limit the amount of conflict surrounding your decisions and relieve some stress you and your family members may be facing.
Make sure to notify the people you have named in your Will and those closest to you about your estate plans. Giving them a heads up will reduce any shock and unease that could occur. Being prepared will make things less stressful and make a difficult time a little smoother.
Forgetting to Frequently Update Your Plans
If you’re uncomfortable thinking about what will happen after you are gone, you are definitely not alone. However, it is important to make sure all your affairs are in order along with all your documents, like a Trust and your Will. Having these in the most up to date versions possible will help you to be more efficient when making important decisions.
Estate planning efforts should be evaluated and updated every five years or so. You should make updates to your estate plans any time information changes and after a major life event. You should also review what you had put previously to make sure it still lines up with your goals. Major life events can include getting married, having a child, getting divorced, graduating school, moving, or anything else that alters your life circumstances, finances, or assets. It is easy to forget about things like this that seem so distant and far away, however, it is crucial to make time to update your plans in case something unexpected happens.
Looking to the Future
Creating plans for your estate and assets is crucial to not only help you, but help your loved ones in the case of something suddenly happening. Being well organized can help you to carry out your legacy and reduce unnecessary stress. Some ways to do this are by verifying and sorting important documents such as birth certificates, insurance policies, passwords, bank account information, etc. You should also consider working with an estate planning professional, and of course, avoiding the above mistakes to ensure that your loved ones are cared for long after you’re gone.