6 Common Errors That People Make When Estate Planning
It’s important to get your financial future in order, and this includes the period after your passing. If you fail to plan for the event of your death, your loved ones may suffer massive headaches and financial trouble, after all.
Estate planning covers many aspects of your life, such as who will inherit your assets and how they will be distributed. With an estate plan in place, you can rest easy knowing that you have prepared for the worst-case scenario.
However, even with running an estate plan, there can be a few mistakes along the way that might cost you or your family. It’s best to work with an expert who can guide you away from the potential mishaps and ensure that your estate planning will work the way you intend it to.
Here are some of the common errors that people can make when estate planning:
1) Being Unable to Start
Some people are simply unprepared for the task of estate planning, and this prevents them from taking the first step. When push comes to shove though, it’s paramount to get the job done. Contact an estate planning expert to assist you through the process, whether it’s with creating a will or writing down the instructions.
2) Not Having Objectivity
People can make the mistake of being too close to the situation. This can cause them to make bad decisions or be too emotional to make an informed decision. An objective third party will be able to act in your best interest, making sure that you don’t get ripped off and that the estate planning process is fair.
3) Not Communicating with Family
If you fail to communicate with family members, they can get the idea that they may be left out of your estate plan. It’s best to sit down with each involved family member individually and discuss. If a family member is not pleased with the plans, it’s best to work things out rather than to have it challenge the terms and conditions later on.
4) Choosing One Beneficiary
The main problem with having just one beneficiary is that they will have access to all of your assets. A spouse will automatically be a beneficiary, but what if you want some of your assets to go to a specific child? It’s best to specify that in your estate plan and divide your assets to important beneficiaries.
5) Forgoing the Terms and Conditions
Without the terms and conditions, problems after your death can arise. For instance, family members could claim that you were mentally unstable when you wrote the will. More than a few people have been taken to court by family members and have lost their will in the process too. To avoid challenges, it’s best to be specific about your intentions.
6) Skipping Finalization
Many people assume that their estate plan is complete as soon as they have finished writing it up. However, it is still necessary to speak with a professional to finalise the work. Experts will go over the will, check that everything is correct, and let you know if you need to make any additional provisions.
If you are considering estate planning, then it’s best to get on the right path right away. The more time you take, the more problems that you are likely to encounter. Working with an estate planning expert will help you avoid any major mishaps.
Need help with estate planning in the UK? Wills and Probate can help in all aspects of future and financial planning, such as estate, inheritance, and more. Get in touch with us today!