Regardless of your age or financial status, you must have an estate plan in place. Things like wills, trusts, and other tools ensure your heirs receive your assets according to your wishes.
As explained by Kiplinger, it is also vital that you avoid common estate planning mistakes. Here are a few issues people encounter and how you can overcome them.
Choose a guardian for minor children
Wills allow you to establish a guardian for any minor children in your care. Should the unthinkable happen, this person will step in to ensure your child receives the necessary love and support to thrive. If you do not name a guardian in your will, the court will make the decision on your behalf. While the court will make this decision with the best interests of the child in mind, most parents would rather make their own selection.
Establish a plan for long-term care
Estate plans not only to protect your heirs after you are gone, they can also protect you while you are still alive. That is why you must prepare for long-term care, which is crucial if you experience a disabling illness or injury. Many people utilize long-term care insurance for this purpose, which can cover costs related to home care, nursing homes, and assisted living facilities.
Update your estate plan as needed
Estate plans must grow and evolve along with your life, so they require an update after major life events. This includes divorce, new marriages, the birth or adoption of a new child, changes in financial status, and other significant events. You should also review your estate plan if you move from one state to another, as changes in the law can affect you and your assets.
Even without a major life event, you should review your estate plan every three to five years. In addition to wills and trusts, make sure you also review things like life insurance policies and retirement accounts.