3 common estate planning mistakes
Thinking about the end of your life may not be at the top of your list of things to do – but planning now can provide peace of mind down the road.
End-of-life planning, more commonly called estate planning, is all about getting plans in place to help manage risks that come when you pass and after that happens. While this is a necessary step, there are common mistakes that you should avoid, including:
1. Using a boilerplate form you found online
You may think if you print some forms and documents off the internet and fill them out, you are set. Unfortunately, there are many situations where estate plans like this won’t be considered legal when you pass.
It’s important to meet with an estate and financial planner to set up the proper documents and ensure everything is in place and legal.
2. Failing to update your estate plan
Estate plans aren’t “set-it-and-forget-it.” It’s necessary to update your estate plan during any major life change. This includes getting married, divorced, having children and more. If you don’t update your estate plan, then you may wind up signing over your assets and other items to an ex-spouse or someone else you would rather not be involved with after you pass.
3. Failing to plan for disabilities or long-term care needs
It’s estimated most people aged 65 or older will require long-term care at some point. Nursing homes are expensive and having a home health aide is often more than most people budget for. Be sure to plan for these costs now, to avoid serious issues.
Creating your estate plan
Creating an estate plan is the responsible thing to do for yourself and your family. However, to ensure there are no issues, be sure to avoid the mistakes listed here. You can also work with professionals who can help you with the process.