Estate Plans are a way for one to entrust and provide future stability to their loved ones. While the feeling of protection and relaxation may prevail upon bestowing estate assets to one’s family, it is best to ensure that someone carries out the process correctly. If not taken properly, the process can cause financial security downfall or unstable finances in the future.
Incorrectly put-together estate plans may cause more stress and grief to a person’s loved ones. Here are some common problems to look out for when estate planning.
Holding Out From Financial Planning Post-Life
It’s no secret; death can be a scary and off-putting topic to think, let alone prepare for. That is one of the main reasons people will often procrastinate on making post-life financial plans such as wills or living trusts. Estate plans are one of the financial priorities and a responsible way to ensure the future of one’s family.
Consider making time to start estate planning or ensure consistent updates every other five years. Big life events such as birth, divorces, marriages may also require someone to change their estate plan.
A person doesn’t need to have loads of money, assets, or a family to make an estate plan. So, don’t make this simple yet profound mistake of not planning estate plans early on.
Completely Leaving Family/Beneficiaries Out of the Planning
One of the biggest challenges to estate planning is the potential of disagreements or disharmony among the beneficiaries upon one’s demise. To lower the chances of possible bad blood, consider involving beneficiaries when making estate plans.
However, this is not a requirement and is often down to one’s own choice. One may leave the estate plan details out, but talking to key family members or attorneys goes a long way to ensuring their estate plans unite their family during testing times.
Labeling Kids as Joint Assets Owners
Regardless of how financially responsible one may think their children are, naming them estate plan co-owners is never recommended. Children remain liable to financial creditors, who may profit off the money in co-owned accounts.
To avoid this, consider giving a child beneficiary status to their account once one passes away. That enables them to use the cash-free from their account and financial dealings.
Estate plans are important to a person’s financial stability and the future of their family’s financial freedom in case they pass away. Be sure to avoid these and more common estate plan mistakes above and create a proper estate plan.