Creating an estate plan is the responsible thing to do. It helps protect your family when you pass away.
There is a lot to consider and think about when creating this plan. You may not realize all the assets you have until you start itemizing them. With so much to think about, mistakes happen. You can avoid these mistakes by knowing what they are.
Mistake: Failing to update your estate plan regularly
There may be decades before your assets will go to someone else. This means there is plenty of time to add to and change your estate.
You may have created your estate plan and then purchased a new home or vehicle. You may have filed for divorce after creating a will or had children and grandchildren you want to add to the estate plan. When your life changes, you should update your estate plan to reflect these changes and ensure everyone is accounted for in your estate documents.
Mistake: Not considering who you choose for executor carefully
When you pass away, you must have an executor. This is an important role. The executor of your estate is a person who will ensure your wishes are carried out. You cannot trust just anyone with this role.
It is important to appoint someone professional, trustworthy and reliable. You should also discuss this decision with the person you choose to ensure they are comfortable with it. Being an executor is a big responsibility, so asking the person if they want the role will ensure they are up to the challenge.
Protecting your wishes after you pass away
After you pass away, your estate plan ensures your wishes are carried out. The key to ensuring this happens is to avoid the mistakes here and know how to make the documents included in your estate plan legally binding.