With the pandemic bringing stories of loss of life and finances, estate planning has become crucial for everyone to ensure a secure financial future. In most cases and in general, a will works well for smaller families with fewer assets and property who have more straightforward inheritance objectives. However, it might simply be not enough in the case of more significant property values and estates. Also, at times, even in simple trust planning, an unprecedented change can challenge the entire authenticity of the will.
This blog points out the most common mistakes people tend to make during estate planning.
Discuss It With Those Affected By It
Communication is essential to forge trustworthy and honest relationships. Talk about it with your family, heirs, and beneficiaries. Discussing estate planning can be one of the most challenging conversations but very important. A thoughtful and well-balanced confrontation addressing the family dynamics is a must. However, excluding some heirs in the process can lead to future accusations of undue influence.
Just One Beneficiary
Always have more than one beneficiary designated for your assets, especially for higher wealth estates. If a beneficiary passes before you, you will need a contingent beneficiary in place.
Forgetting About Your Digital Assets
Digital assets include all your income sources and technological assets, which may consist of social media accounts, online banking, email accounts, among others—plan and outline who will manage these assets and how you would like them to be handled.
Get An Unbiased Independent Expert Review
A secondary unbiased expert review will ensure that all the planning and distribution are true to your intent. It ensures that the entire process takes place the way you wish. Additionally, a court is less likely to nullify an estate plan when an independent review is conducted.
Too Specific
Although people might think otherwise, getting too specific can cause problems. Also, sometimes some assets have value now but lose their relevance in the future. Review your plan every three to five years or at the time of any significant event/emergency.
Takeaway
A well-crafted estate plan can build upon the legacy you have created. If you are reading this, call 808-460-0436 or 650-319-6801 today for a free consultation or visit my website for dozens of free blog articles and answers to frequently asked questions. Whether Legacy or Business Planning, Thank you for taking the time to read my blog. If you would like to receive notice as each new blog article is posted, fill out the “Contact Us” form and indicate in the comments section that you would like to receive an email. Your information will not be shared, and you will not be contacted for any other purpose, unless you specifically request it.
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