Making your estate plans can be one of the most rewarding things you can do not only for yourself but for your family. The estate planning process typically involves totaling all your assets and setting instructions for how they should be divided. The first time you write a will or trust may not seem that difficult, but there are steps people often overlook.
Some estate planning mistakes can be extremely detrimental when it comes to the reading of a will or trust. Knowing what can cause future problems now can save your family a whole lot of hassle later. Here’s what you should know:
Forgetting to update your beneficiaries
Nothing is carved in stone, it’s an old saying and one that stands true when planning your estate. People often designate beneficiaries that may no longer play a part in a will or trust.
You may have written for someone to inherit a part of your estate only for them to pass away before you. You may have new friends or grandchildren come along since you last updated your plans.
You may have designated a former partner to inherit from your estate. Some people consider removing ex-spouses from their estate plans. Make sure your estate plans change as with your goals.
Not setting your powers of attorney
People often think of death first when planning an estate and not the possibility of having debilitating medical conditions. In the event that you can no longer care for yourself, you would need someone who can address your financial and medical care.
Failing to create medical and financial powers of attorney leaves you personally unprotected in an emergency situation. It could make it harder for you to get the end-of-life care that you envision.
Picking the right person to be your power of attorney can be a difficult process. You should know your options when taking the steps to plan your estate.