Estate planning is not something most people look forward to. In fact, it may be something you continue to put off. Although it'll bring you face-to-face with some important questions, it's critical to dive in at the appropriate time.
Here are five estate planning mistakes that have plagued many people before you:
- Waiting too long. You assume you have an unlimited amount of time to create an estate plan, so you continue to put it off. Waiting too long, however, can backfire if something goes wrong.
- Forgetting to update your estate plan. The estate plan you create today may not be sufficient in the future. Get into the habit of reviewing your plan at least once every year. If you find something you need to change, take immediate action.
- Overlooking the importance of incapacity planning. It's a must to know who will handle your affairs if you become incapacitated. For example, having a healthcare power of attorney is important.
- Choosing the wrong executor. This is the person who will administer your estate upon your death. Choosing the right person for the job will put your mind at ease.
- Forgetting to name a guardian for your children. If you have children younger than 18, naming a guardian is vital. This person will step in to raise your children should you and your spouse pass on.
With the right level of planning, you can prevent all of these estate planning mistakes. Subsequently, you'll feel good about the plan you have in place and what the future will bring for you and your loved ones.