Estate planning is extremely beneficial as it can help you ensure your assets are transferred to whom you desire as well as ensure your wishes are carried out properly. Unfortunately, an individual may make a critical mistake when it comes to their estate plan that could affect their future. It is important to understand the importance of each aspect of an estate plan to successfully protect your assets in the future. It is normal for people to feel like they are going to make a critical mistake while estate planning. However, you can rest assured as a skilled Montgomery County Estate Planning Attorney can help you avoid making significant mistakes when estate planning.
What mistakes are avoidable when estate planning?
Certain mistakes are avoidable when estate planning. The following are common mistakes you should avoid making while estate planning:
A common misconception when it comes to beneficiaries is that you only need one. However, that is not accurate. It is beneficial for you to have at least two designated beneficiaries. Through estate planning, you can name a primary beneficiary and a contingent beneficiary. This is extremely beneficial in the event a primary beneficiary passes away. Beneficiaries are extremely significant, as they receive your assets after you’ve departed. You should strongly consider naming at least two beneficiaries.
Power of attorney (POA)
Unfortunately, a huge mistake you may encounter when creating an estate plan is forgetting to name a Power of Attorney. Through estate planning, you can appoint someone you trust to make critical decisions on your behalf in the event you become incapacitated. You can have peace of mind knowing someone you love and trust has control over your medical decisions in the event you become incapacitated. It is important not to make the mistake of forgetting to appoint a Power of Attorney.
In today’s society, there are technological advancements that allow you to do your banking online. When estate planning, you could potentially forget to include your digital assets. It is important to include digital assets when estate planning as digital assets are just as valuable as non-digital assets. It is imperative to consider creating a digital asset.
When estate planning, you should consider what you wish for your final arrangements. It is a mistake to not include your funeral arrangements or your end-of-life care plan in an estate plan. An estate plan allows you to specify your wishes, and utilize this effective tool to ensure your wishes are carried out properly after you’ve departed.
Keep an up-to-date estate plan
A huge mistake individuals make is not keeping an up-to-date estate plan that reflects their current situation. An estate plan should be updated frequently or at least whenever there is a major change such as the birth of a child. Don’t make the mistake of updating your estate plan too infrequently as it can cost you later on.
If you are interested in creating an estate plan, please don’t hesitate to contact one of our determined and knowledgeable attorneys. Our firm is committed to helping our clients cover all pertinent components of an estate plan to ensure their wishes are carried out as they desire after they’ve departed.