Mistakes may happen even when people put in their most diligent efforts to avoid them. On the other hand, there are some estate planning mistakes that are easily avoidable.
CNBC recently wrote about some common mistakes that should be avoided in "Don't drop the ball when planning your estate."
- Many people do not make a will. Without a will, you cannot decide who gets your property. Every estate plan should have a will of some sort.
- After making a will, some people never update it. This is a mistake as a will should be changed whenever there is a significant change in circumstances to make sure the will reflects the new circumstances.
- It is a mistake to not consider how your heirs will handle their inheritances and whether they are capable of being responsible with anything you leave them.
- It is a mistake to not consider getting a trust, especially if your heirs have the potential to be irresponsible. A trustee can oversee the inheritance and make sure it is used appropriately.
- Finally, it is a mistake to not think carefully about who to appoint as an executor of a will or as a trustee.
An estate planning attorney can guide you through the process.
Reference: CNBC (Sept. 13, 2016) "Don't drop the ball when planning your estate."