You want to take care of your family, no matter if you are physically present. That is why you feel now is an ideal time to tend to estate planning matters. But what do you know about common estate planning blunders and how to avoid them?
Whenever possible, learn from others’ estate planning mistakes so you do not repeat them yourself. You can make the most of the time and energy you spend on providing for your loved ones by avoiding these common oversights.
Having a loose plan
Your estate plan must be concrete, detailed and compliant with the latest regulations and laws in Pennsylvania. It is not enough to have a few loose scraps of paper with your assets listed and some names of who you want to inherit those assets. Instead, you need binding legal documents such as a will or trust. That way, you do not leave vital decisions up to the court system or state laws that might not align with your wishes.
Neglecting to update your plan
When you have your trust, will and other essential documents in place, make sure to review them from time to time. You want your estate plan to reflect your most recent intentions. For instance, if you change your mind about your executor, power of attorney or beneficiaries but fail to document the changes, then they may not happen. Life events such as marriage, divorce and having a child also require careful updates to your existing estate plan.
Failing to plan for long-term care
Besides taking care of your family, you must also factor in taking care of yourself with your estate plan. Consider preparing for the cost of long-term care by securing a long-term care and disability insurance policy. Doing so sooner is better than later, as the longer you wait, the more expensive such policies can become.
By ensuring you do everything properly and legally within a comprehensive estate planning strategy, you can provide peace of mind for you and your family.