Estate planning is often overlooked despite its importance. A study by BMO Wealth Management showed that 52% of US adults don’t have a will and 40% of parents haven’t discussed estate planning needs. As uncomfortable as the issue may seem, passing away before an estate plan has been made only creates more problems for heirs and survivors. Experts at utahseniorplanning.com know how difficult it can be to get a probate. It’s not the best thing to encounter when one is still grieving.
To avoid this, it’s best to have an estate plan early on. In the United States, anyone 18 years old and above can legally make a will. However, in planning your estate, there are some mistakes to avoid such as:
No Estate Plan
The biggest estate planning mistake anyone can do is having none at all. The myth that it’s only for the rich is just that—a myth. Everyone needs an estate plan. The affairs that you’ll leave behind, no matter how trivial, still need to be settled and only you can say how you want those to be handled.
Not Having a Will
A will isn’t going to settle everything upon your death, but it still helps settle certain issues. On that note, relying solely on a will is a big mistake as well. Complete estate plans require documents and paperwork which give your chosen executor the power to decide should you be unable to.
Distributing Inheritance Early On
It’s common for parents to give their adult children their inheritance at an early time. However, a study showed that an inheritance given early on is usually squandered. And, in some cases, early distribution could end up in probate court, which is something that most would prefer to avoid.
Choosing the Wrong Executor
For those who are married or have grown children, either the spouse or an offspring is usually made the executor. This might not always be right decision. It’s best to consider every possible person who won’t have a personal agenda when the time comes to handle your estate.
Estate planning is not an easy task – but it’s not something that should be ignored. Estate planners everywhere will say the same thing: Have an estate plan, just be sure to avoid these mistakes.