Estate planning is an important process. It can greatly benefit friends and families if done right. However, estate planning is a complicated process, which may lead to some common mistakes.
If you are planning your estate, you may want to learn about some common mistakes that could create larger issues for your beneficiaries. Here is what you should know:
Mistake 1: Using DIY estate planning documents
Many online sites provide do-it-yourself (DIY), pre-made estate planning documents. These pre-made templates can seem cheap and easy. However, they can also lead to issues if the documents are not accurate, which many are not.
Mistake 2: Not organizing your advance health care directive
While a lot of the estate planning process is instructing asset distribution, not all of it is. You can use an estate plan to instruct how you should be cared for if you can not do it yourself. Leaving this out of your estate plan could make it hard for your family and loved ones to know how you would have wished to be taken care of if you could not care for yourself.
Mistake 3: Following estate planning laws from the wrong state
While many estate planning laws are similar throughout the states, many states have unique estate planning laws. When planning your estate, it can help to learn about how different laws can affect your plans.
Mistake 4: Forgetting about taxes
It is possible for your estate to be taxed after you pass away. You may want to learn about how much your estate could be taxed and how you can limit the taxable estate.
You can reach out for legal help to discuss your estate planning options.