Finance

Estate Planning Mistakes You Can Easily Avoid

START SLIDESHOW >>

During life, you are often blessed enough to be surrounded by loving family and friends. When you pass, you would probably want your assets and belongings to go to them. Mistakes in your estate, however, can make passing on your assets and belongings complicated, frustrating, and nearly impossible. 

Learning how to avoid these mistakes can help you rest assured that things will go according to plan after you pass.

Not Updating Beneficiaries

In your estate, beneficiary designations hold more weight than wills or trusts. Therefore, the people named in your beneficiaries will get your assets and money even if not explicitly named in your will or trust. 

Thus, it is important that whoever you have named your beneficiaries is really who you want to inherit your things. This may mean constantly updating your beneficiaries depending on new births, deaths, marriages, and fluctuating relationships with people.

Not Leaving a Will

A will is where you lay out how exactly you want your assets and money to be distributed. It can be as detailed as you want it to be. In fact, the more detail it has, the better. Highly detailed wills leave little room for misinterpretation and are easier to follow through with. 

The worst mistake you can make is not leaving a will, as the probate process can get complicated. Probate is the legal proving of who the rightful heirs are, typically done through careful analysis of a will. Without a will, it is much more difficult to officially declare who is and isn’t a rightful heir to your estate.

Not Having Control of Your Bank Accounts

When you don’t have complete control of your bank accounts, it becomes much more complicated to transfer the money to loved ones once you have passed. This is because the money and credit may not be completely under your control. A simple way that you can make sure you have complete control of your bank accounts is by not adding anyone on your accounts. This will ensure that all transactions and details of the accounts will be handled by you until your death.

A person’s estate is a very personal and important thing. It should be planned out carefully in order to make sure one’s will is followed through on. You cannot control when or how you will pass, but you are able to control how you can help out your loved ones after death by planning out your estate.

Did you enjoy reading this article? Here’s more to read. Parts of Your Commercial Property That Need Regular Maintenance


Add Comment

Click here to post a comment