Creating an estate plan for the first time is easier said than done. There’s a lot that goes into this process, so it’s critical to have a thorough understanding of what you’re up against.
Familiarity with common first time estate planning mistakes will go a long way in helping you avoid trouble.
While there’s no shortage of mistakes lurking, here are some of the most common:
- Believing that all you need is a will and your estate plan is complete
- Assuming that a trust is only for wealthy individuals
- Overlooking the importance of incapacity planning, such as creating a healthcare and financial power of attorney
- Ignoring long-term care planning, such as determining how you’ll pay for care should you need it
- Neglecting to consider how your retirement plan fits in with your estate plan
- Forgetting to name a guardian for any children under the age of 18
- Forgetting to take your pets into consideration, such as through the creation of a pet trust
Now, do you see just how many mistakes can pop up and bite you when creating your first estate plan?
This isn’t meant to scare you, but to instead help you understand that this process is often more complex than it seems.
On the plus side, knowledge of these mistakes and a basic understanding of what you want to accomplish can go a long way in putting you on the right track.
Once you create your first estate plan, you have a foundation in place for any changes you need to make in the future. For example, if you get married or go through a divorce, you’ll want to adjust your estate plan accordingly.
If you require any assistance creating your first estate plan, contact us. We’re happy to show you the ropes to ensure that you devise a plan that suits you, your loved ones, and your estate as a whole.