Top 4 Estate Planning Mistakes to Avoid in 2022
Estate planning is an essential part of managing your estate after your demise. Though estate planning is necessary, it is more critical to avoid the common mistakes that most estate owners make. You don’t want to add up your loved one’s problems grieving your death. It would be difficult to deal with all the issues caused by improper estate planning.
Drafting wills and estate planning should be on top of your list when you plan for the future. Whether you are drafting your first will or updating an existing one, you can easily avoid them and save your loved one from a headache if you are aware of the common mistakes of estate planning. Therefore, here are the top four estate planning mistakes that you need to avoid in 2022.
- Postponing Your Estate Planning
The top mistake many estate owners make is that they think they have plenty of life ahead to plan their estate, and therefore they usually postpone their estate planning. It’s important to understand that planning your estate isn’t something you should put off for later. Failing to plan your estate means you risk your assets and financial future. If you fail to plan your estate, your property and possessions will be distributed according to your state’s estate laws. And the outcome of that may not be as you wish. That’s why you should draft your estate plan as soon as possible instead of postponing it.
- Not Including Your Family in Estate Planning
Although the content of your estate plan must be kept confidential, in some instances, it’s a good idea to have a word with your family and close friends. After all, they will be receiving your possessions after your demise. You don’t want any conflicts and disagreements between your loved ones caused by the unfair distribution of your assets. Having a conversation with your family members will help you understand their expectations regarding your estate. If you think it isn’t possible to discuss with your family your estate planning, you can use particular language in your estate plan that will write off anyone who will contest the content of your will. Having a word with your family will clear out most of the misunderstandings and help you form a perfect will for your loved ones.
- Forgetting to Name a Power of Attorney and Health Representative
Estate planning is not just about asset distribution. You must name someone as a power of attorney, either for financial or medical purposes, to take your financial and medical decisions on your behalf. There is the possibility that you might suffer from a medical condition that might leave you incapacitated to make your own decision regarding the will. In that case, a power of attorney will help you while forming a living will.
- Not Mentioning Your Final Arrangements in Your Will
As mentioned earlier, wills and estate planning go beyond the scope of distribution of the assets and estate. After your demise, your loved ones will be grieving your loss, and it can be difficult for them to manage your final arrangement or the funeral. They might not have the financial ability to do it since you were the only earner in the family. That is why it is essential to mention in your will how you would like to honor your death and what type of funeral, memorial, or burial you want.
Planning your estate and forming a will are critical parts of your future plan ahead. Hiring an estate planning lawyer as your executor could help you abide by all the estate planning laws in your state and ensure the fair execution of your will.