Estate planning helps you take care of your family members and loved ones after your death. Are you familiar with common estate planning blunders that may jeopardize your efforts?
Kiplinger explains several estate planning mistakes and how to avoid them. Educate yourself on protecting your assets and loved ones.
Keep your plan current
Once you have an estate plan in place, look over it occasionally to ensure that it meets your most current desires. If you move away from New York, your plan must account for your new state’s estate planning laws. A marriage, birth, death or divorce may necessitate a change.
Have an actual estate plan
Whatever plan you have for your estate, put your desires in a trust or will. Writing your desires on a piece of paper or relating them to a loved one does not keep state succession laws from deciding where your assets go if you die without creating legal estate documents.
Do not forget about long-term care or disability
As you age, you may become disabled or require long-term care in a nursing home. If either scenario happens, you could become buried under a tide of unexpected debt. Plan for disability and long-term care while creating your estate plan.
Account for estate tax liability
Just because you are not a rich person does not mean that you do not have to worry about estate taxes. Speak with a financial professional familiar with the latest tax laws to determine whether you can expect to pay taxes on your estate and how much.
Plan to take care of your minor children
If you have minor children, you and your spouse’s untimely deaths may leave them without parents. Include a guardian in your estate so someone of your choosing can raise your kids.