Estate planning is one of the most effective ways to make sure your personal wealth and assets are distributed according to your wishes after you pass away. But even if you recognize the importance of having an estate plan, you may still make common mistakes that threaten how you want your estate to be divided.
Here are some of the most common estate planning mistakes we see people make and what you can do to avoid them:
- There is so much red tape an estate must get through if a will does not exist. Make estate planning a priority and create a will as soon as you can if you do not already have one.
- When was the last time you reviewed your life insurance coverage? If it has been several years since you looked at your policy, it probably does not reflect your current circumstances. Make sure your life insurance policy reflects your needs and the needs of your family members.
- Tax laws are constantly changing, and if you do not keep up with them, you could be missing out on estate planning opportunities. Talk to a tax advisor or CPA about revising your estate plan to avoid a heavy estate tax bill.
- While talking about your mortality can be a difficult conversation to have, do not use this as an excuse to avoid going over your estate plan with your family. Talking about the details in your estate planning documents can prevent difficulties and misunderstandings among your loved ones after you die.
Most importantly, remember that your estate planning documents are not stagnant files. Make sure you review them regularly with us to ensure they continually reflect your wishes for your personal assets and your estate.