You probably already know how important it is to have an estate plan in place. Wills, trusts, and advanced directives protect your assets, your family, and yourself. However, creating an estate plan is only the first step in the process.
You must also make certain that you are actively avoiding common estate planning mistakes, as they can derail your careful strategy. Here are a few mistakes and how you can safeguard your plan against them.
Forgetting to name a guardian for minors
In addition to protecting your assets, a solid can also protect your children. Parents must name an adult guardian for any minors in their care within their will in case the unthinkable happens. This person will step in and assume a parental role for your child, which offers great peace of mind. While the court will select a guardian on your behalf if one is not named, most people feel better about making the decision on their own.
Failing to update your plan
Estate plans must grow and evolve along with your life. Accordingly, incremental reviews are strongly encouraged by legal professionals. Review your plan after a marriage, divorce, the birth of a child, change in financial status, or other major event. Even if there are no major events, you should review your estate plan once every three years or so.
Neglecting long-term care decisions
Including a plan for long-term care within your estate plan benefits you in so many ways. Many people struggle to pay for home care or assisted living facilities in their golden years, which can leave them without many options. By establishing a financial safety net through a will, trust, or life insurance policy, you can rest assured that you will receive the care you need when you need it.