We are used to making plans for the now. Have you ever wondered what will happen to everything you have labored to accomplish when you die? You are probably putting away this thought from your mind as it is not too pleasant to think about.
The truth is that no one can escape death. No matter how heart breaking it may be to know that one day you are going to die, leaving everything behind; you can’t avoid it forever. What is important is not neglecting to do the needful out of fear. You must bring yourself to plan your estate else, everything you have labored for might be mismanaged when you pass on.
People often make some common mistakes while planning their estate. This article provides an insight to 10 among these common mistakes. It also provides solutions how to avoid these mistakes.
Not making deliberate plans
“Deliberate” in the sense that, you may probably have a background plan. A plan which you just have sitting in one corner of your mind. You never get the time to put together tangible plans which will cover your estate when you die. Failure to plan your estate means at your death, probate court will determine what happens to your asset.
How to avoid this mistake
All you need do is to shun procrastination and be deliberate about planning your estate. Book a meeting with an attorney and financial advisor today. Our attorneys are always here to help. Contact us now.
- Lack of plan review and update
Making an estate plan is one thing; in fact, it’s only the first step to it. Reviewing and updating your estate plan is another thing on its own. Review and update of your plan is just as important as making the plan.
Most times major event take place in your life that might require you to update your estate plan. If you move to a new state, you have to update your estate plan to make sure your estate documents are in alignment with the state’s law.
How to avoid this mistake
Be sure to update your estate plan after a major event in your life
- Neglecting long term care and events of incapacitation
Another common mistake people make is not planning for old age. What are your plans for yourself when you grow old, when you won’t be able to cater for yourself? Should something happen now and you are out of commission; do you have plans on ground for your long term care? These are times you should plan ahead for. Do not make the mistake of neglecting to plan for times like this.
How to avoid this mistake
Make plans for your old age now that you have the energy and resource.
- Insufficient liquidity
Leaving your family and heir broke after your death is a very bad thing to think about. But you can avoid this now that you are still alive. Having a life insurance is a good means to make cash available for your love ones upon your death
How to avoid this mistake
Consult professional attorneys and financial adviser to guild you. Our attorneys are just a call away.
- Failure to plan for young children
We don’t pray for untimely death but what if it should happen? Do not allow your young children to be victims of your mistake of not planning for their care.
How to avoid this mistake
Name a guardian and make financial provisions for your children in you will.
- Mistakes of asset ownership
If a couple own properties separately, it poses problems when one dies. But if there is joint ownership of assets, there will be ease of asset transfer when a spouse die.
How to avoid this mistake
Discuss with your spouse or business partner and get things straight
- Failure of incorporating charitable gifting and bequests
Why miss the opportunity of giving back to your community. You can include a charitable gifting plan in your estate.
- Not considering tax implications for your heir
People make the mistake of putting their heir into tax battle after they die. ,
How to avoid this mistake
Talk to an attorney and look up ways by which you can avoid this.
- Not planning for estate tax liability
Not putting this into consideration during planning is a ver6 huge mistake as you might be caught unawares.
How to avoid this mistake
Be up-to-date with government tax polices
- Doing it yourself
Matters regarding estate planning are legal and professional hence it is important for you to get a well-informed attorney to help you through the process of estate planning. Many errors arise as a result of this mistake
How to avoid this mistake
Seek the help of legal personnel. Our attorneys are always available if you need assistance.