No matter how big or small your estate plan is, there are common mistakes that impact many plans. These mistakes can lead to expensive taxes, complex legal battles and having your inheritance go to people you didn’t intend.
It’s useful to educate yourself on common areas of confusion regarding estate planning. This way you will be better prepared to make an estate plan you feel confident about.
Not knowing how your plan works
You may feel tempted to let your attorney take the wheel. You might find yourself going along with everything they say, without fully discerning the content. In this scenario, your estate plan may not be appropriately implemented because you didn’t fully understand your plan.
A good estate planning attorney will explain—in easy-to-understand terms—how your plan works. Don’t feel bad about asking questions, because they are there to help. They can also show you what’s necessary for maintaining the plan.
There are many things to consider about an estate plan, but if you work with your attorney, it’s likely you will be able to get the plan you want.
Failing to review beneficiaries
There are many times in your life where you may want to revisit your beneficiary designations—especially during major life changes. These may include marriage, divorce, birth of children and death of beneficiaries.
If your relationship changed with one of your beneficiaries, you could change the assets that you were planning to leave them. You may also decide to remove them from your estate plan and choose a different beneficiary.
Planning your estate can quickly become complex. By working with an estate planning attorney, you can feel confident about the validity of your plan.