4 Estate Planning Mistakes That You Should Avoid

Nobody wants to think about their death. It is not an enjoyable idea to consider, and it is even less pleasant to discuss. Even though the topic is never fun, it is important that you begin planning for your family’s financial future as early as possible. Having a sound and solid estate plan can help you and your family have peace of mind by knowing that the future is well planned for. Here are some common estate planning mistakes that people make:

1. Not Having an Estate Plan

Statistics show that more than half of Americans have not made a will or plans for their finances after they die. Estate planning is not just financial planning--you are also planning for your own health and well-being. It also means that you are providing your loved ones with an organized inheritance and less stress when your time comes.

2. Relying on Just a Will

A written will is essential to any estate plan, but that should not be where your estate planning stops. A complete estate plan contains other important documents, such as a power of attorney and advanced medical directives. These documents can become extremely beneficial toward the end of your life or if you are not in the condition to make medical decisions for yourself. If you do not have these documents, a court usually appoints someone to make those decisions for you, and it may not be someone you would have chosen. 

3. Choosing the Wrong Executor

For many people, their first choice for the executor of their estate is a relative, often a brother or sister. While this may seem like a good idea, it can put your family member in an uncomfortable position if your will is not necessarily favorable to all of your family members. It may be best to name a neutral person who can stay impartial when it comes to distributing assets. 

4. Setting Up Your Estate Plan and Forgetting About It

As time goes on, things change, and your situation might not be the same. Your finances could be different, or you may have other beneficiaries that you should name in your will. Once you set up an estate plan, you should periodically revisit your documents and update them as needed to ensure they accurately reflect your wishes.

Get Help From an Orland Park Estate Planning Lawyer

Estate planning is not just for the wealthy--it is a good idea for everyone to have some sort of plan in place for how matters should be handled after you die. The more organized you are now, the less stress there will be in the future. Setting up an estate plan can be tricky, which is why you should seek the help of a knowledgeable and experienced Oak Forest estate planning attorney. Contact Anderson & Associates, P.C. to discover your best options as you plan for your family’s future. Call 708-226-9904 to schedule a free consultation.

Sources:

https://www.forbes.com/sites/bobcarlson/2018/02/21/7-big-estate-planning-mistakes-part-1/#7cf0c84c5d06

https://www.rothira.com/estate-planning-mistakes

https://www.cnbc.com/2014/10/22/trust-bust-steer-clear-of-the-8-biggest-estate-planning-mistakes.html