After working hard and amassing wealth and assets, you want to ensure that it goes to the people you love upon your death.
Unlike two-thirds of people who do not have an estate plan, according to Caring.com, you have planned ahead to ensure your wishes get met. Unfortunately, a few missteps in the planning process may still lead to uncertainty and troubles down the road.
1. Using outdated wills
If you think about how life has changed from 20 years ago, it clearly points to the fact that a 20-year-old will likely not reflect your current situation. After making a will, it easily turns into a checkmark on a to-do list. People should consider wills as living and evolving documents that need regular updates and checks.
2. Naming only one beneficiary
Depending on your situation, you may only have one person you want to give your assets to. Knowing that life comes with uncertainties, every asset should include a primary and contingent beneficiary to ensure your life’s work does not get lost in the legal world.
3. Ignoring the tax factor
Even when thinking about the end of life, taxes still have to get considered. As a person who has property and wealth to live off, it also means that your beneficiaries may get stuck with some high taxes. Drafting a trust fund helps alleviate these taxes.
4. Leaving out funeral wishes
Dealing with the death of a loved one comes with an array of emotions and chaos. Including funeral arrangements in your estate plan alleviates an unnecessary burden on your friends and family.
Developing an estate plan requires making big decisions. Taking the time to focus on the details helps ensure the plan gets executed properly and without added hassles.