Any estate planning mistake, even a small one, can have a major impact on you and your loved ones. This is why you should do whatever it takes to make all the right decisions.
Here are some of the many estate planning mistakes that have plagued others before you:
- Waiting too long to create an estate plan. Even if you are young, you shouldn't put this off another day. Once you have an estate plan in place, you'll feel much better about the future.
- Forgetting to update your estate plan when necessary. There are times when this makes sense, such as if you have gone through a divorce or brought a child into the world. Get into the habit of reviewing your estate plan once a year.
- Neglecting to plan for a serious illness or injury. You could become incapacitated at some point in the future, meaning that a power of attorney could do you a lot of good. This gives someone else the power to make decisions on your behalf, if you are unable to do so as the result of an injury or illness.
- Overlooking the importance of choosing a guardian for your minor child. If you have a child under the age of 18, it's essential that you choose a guardian. This person will be responsible for raising him or her if you and your spouse pass on before they reach legal age.
These are far from the only estate planning mistakes you could make, but they are definitely among the most common. You should do whatever you can to avoid mistakes when creating an estate plan, as this will put you and your family in a better place down the road.
The best way to avoid estate planning mistakes is to be patient and to consult with the right types of professionals. By doing this, you can be sure that your estate plan is in good working order.