One of the most frequent reasons we hear for failing to plan is “I don’t have the time”. Another reason we hear is “It’s on my list of things to do”. I’ve never met anyone who didn’t want the best for their family. Leaving life is never on our time frame, so procrastination is never in our best interest. Not getting around to estate planning has serious consequences, especially when talking about estates.
Estate planning is crucial for ensuring your assets are distributed according to your wishes and for minimizing potential burdens on your loved ones. However, many common mistakes can undermine even the best-laid plans. One of the most significant estate planning mistakes is simply not having a plan. Whether due to procrastination or assuming that estate planning isn’t necessary, many people delay or neglect this critical task.
If you’ve experienced life changes, such as marriage, divorce, or childbirth, failing to update beneficiaries can lead to unintended consequences. Joint ownership of property and accounts can also lead to inequities if not planned effectively. Regularly review your joint accounts and beneficiary designations and ensure they align with your plan.
Review your estate plan at least every three to five years or after any major life event. Periodic updates ensure your plan reflects your current circumstances and intentions. It’s also critical you talk to your estate planning team whenever you have a significant life change. event. Periodic updates ensure your plan reflects your current circumstances and intentions. It’s also critical you talk to your estate planning attorney whenever you have a significant life change.
Failing to plan is at the top of most estate planners list of mistakes. Estate taxes (also known as inheritance or death taxes) can take a hefty chunk out of your estate, reducing the amount that will pass on to your heirs. This can be troublesome for estates that may exceed exemption limits or fail to take advantage of tax-saving strategies.
Failing to plan for these taxes could result in an unnecessary tax burden that could diminish your wealth, and in extreme cases, require the sale of valuable assets, such as real estate, business interests, or investments.
