When it comes to estate planning, you want to do everything the right way the first time around. Any mistake can cost you and your loved ones time and money, both now and in the years to come.
Understanding the most common estate planning mistakes can help you prevent them. Here are five that you want to avoid at all costs:
- Putting it off: Maybe you’re in your 20s or 30s and assume that you have many years to create an estate plan. While you may be right, you don’t want to put it off. An estate plan helps with many things, from naming a beneficiary to choosing a guardian for your children. The sooner you create an estate plan, the better off you’ll feel.
- Forgetting to update your estate plan: You do your best to create a comprehensive estate plan the first time around. Even if you do so, changes may still be necessary in the future. For example, if you marry, divorce or have a child, your estate plan is likely to change.
- Neglecting to plan for disability: There’s more to an estate plan than deciding on the distribution of your assets. A comprehensive estate plan will prepare you for a potential disability. For instance, you can appoint a power of attorney to manage your finances should a disability make it impossible for you to do so.
- Choosing just anyone to handle your estate: Think long and hard about who you name as the executor of your will or the trustee of your trust. This person should be responsible, trustworthy and able to work well under pressure.
- Do-it-yourself (DIY) estate planning: There are online tools that claim to help you with the estate planning process, but going down this path can cause more harm than good. Not only are you staffed with making important decisions on your own, but you may not have familiarity with federal and state laws that can impact your estate.
Avoiding these estate planning mistakes may not be easy, but doing so is critical to the well-being of you and your family.
Read our blog for more information on all aspects of estate planning in Arizona.