Estate planning is a crucial step for everyone, even for Michigan residents who do not consider themselves wealthy. This process can allow you to decide what will happen to your hard-earned money and assets after you pass away as well as lay the groundwork to protect your loved ones in the future.
As you consider the estate planning steps you may need to take, it can be useful to consider the common pitfalls that may cause complications in the future. Avoiding mistakes with your estate plan can ensure that your plans come to fruition and the needs of your beneficiaries are met, even long after you are gone.
Missteps can be costly for you and your family
When a person makes a mistake with his or her estate plan, it can be costly in many ways. In order to avoid mistakes, it is useful to carefully consider all of your needs and objectives and do everything possible to make informed decisions. Some of the most common estate planning missteps include the following:
- Failing to update the will as needed, such as after a remarriage or the death of a spouse
- Failing to plan for a potential disability in the future
- Not transferring your life insurance policies as needed or necessary
- Not applying for federal estate tax exemptions
- Failing to make charitable gifts to reduce your estate taxes
- Naming the wrong person to handle your estate
- Drafting your estate plan without knowledgeable tax, legal and financial guidance
One the most common and major mistakes that people make regarding their estate plan is failing to have one in the first place. When a person dies without a will, it can make things incredibly complicated for the loved ones left behind. You worked hard to earn money, save and build wealth, and you have the right to decide what happens to it after you’re gone.
Why you shouldn’t procrastinate
You may be healthy or young, but that doesn’t mean that you should not be careful to have a strong, thoughtful estate plan in place. Life is unpredictable, yet with an estate plan, you can look forward to the future with confidence.
Knowing your interests are secure can give you and your loved ones peace of mind. You would be wise not to wait to find out the right steps you should take for your estate plan. Instead of procrastinating, take these matters into your own hands and give yourself and your family security and stability.