When you create a plan for the future, your goal is to draft documents and include provisions that will protect your interests, shield your rights and give you the ability to decide what will happen to your property after your passing. Creating an estate plan allows you to have the final say in certain matters that could impact you and your loved ones. Your estate plan allows you to plan for the future and have peace of mind regarding your health care, property and much more.
Even with the best of intentions and a carefully crafted plan, certain mistakes could negatively impact you and your loved ones. Hidden mistakes and unnoticed errors could affect the implementation of your plans or the enforceability of certain documents. It may be in your interests to take a careful look at your plans and see what areas could use an update or change.
Don’t let these mistakes derail your estate plan
One of the most common mistakes people make in their estate plan is assuming that they don’t need an estate plan or only need the minimum amount of protection. Common and possibly hidden mistakes that adults often overlook in their estate plans include the following:
- Failure to properly draft documents or include important provisions in writing
- Overlooking the need to plan for long-term care or other possible needs
- Waiting to update existing plans after major life changes, such as a marriage or birth of a child
- Failure to consider the potential tax implications of certain decisions
- Not considering how to properly transfer certain types of assets
Simple missteps can have a major impact on estate planning efforts. You may not be aware of the problem until it is time to implement your plans, or your loved ones must complete the task of settling your estate. Errors can lead to disputes between heirs, confusion regarding your wishes or the inability to complete your instructions due to legal challenges.
Regular check-ups are important
In order to prevent a potentially negative impact from various types of estate planning mistakes, it will be helpful to conduct regular check-ups of your estate planning documents. Careful review of your documents or changes in your circumstances could determine the specific steps you will need to take for the security of your long-term interests.