Estate planning is a near-universal concern. People from all different walks of life need to think about what may happen if their health declines or they die. Many people rush through the process of estate planning or use documents that they download from the internet to their own detriment. People typically need to plan their estates carefully to optimize their own protection and ensure they leave a positive legacy for others.
Those who learn from the most common estate planning mistakes outlined below can potentially make better decisions when planning for the future.
Procrastinating for too long
A shocking number of people never get around to establishing an estate plan. Recent research indicates that roughly two-thirds of adults in the United States do not even have a will, let alone a comprehensive statement. Putting off estate planning until some indefinite future date may mean having an emergency or dying without a plan.
Using digital documents
The proliferation of legal paperwork online has led to many unfortunate scenarios. People download documents that may not even comply with state law. They may fail to take the rights steps when executing those documents or may include terms that invalidate. E-wills still require witnesses and must meet certain standards to comply with state law.
Ignoring the plan after creating it
An estate plan is not static. It needs to be dynamic and change with an individual’s circumstances. People need to adjust their estate plans when their assets or family circumstances change. Failing to do so can lead to outdated and ineffective documents.
Including the wrong details
Sometimes, people try to achieve goals with a will and set themselves up for failure. For example, people may change their beneficiary for their life insurance policy by mentioning it in their will. Unfortunately, the paperwork filed with the company determines who receives those funds. People may need help to ensure they don’t include inappropriate terms in their wills.
Focusing only on death
A will or trust can be a key element in an estate plan. However, it should not be the only document someone drafts. People may also need advance medical directives and powers of attorney to protect themselves in the event of an emergency.
Learning from the mistakes that others make while estate planning can help people create the best documents possible. Thorough estate plans that receive regular reviews tend to offer the best protection for the people who draft them.