How to Avoid Common Estate Planning Mistakes

When it comes to estate planning there are some common mistakes that can really add up. Estate planning is more than just making out a will. A quality estate plan will preserve your assets, protect your loved ones and prepare your family for end of life issues.

Difficulty: Moderately Challenging

Instructions

1. Don't wait too long. The most common estate planning mistake is assuming you don't need one. Everyone will be faced with end of life issues related to health care and assets. Waiting too long to settle these important issues puts undue stress on your family.

2. Stop assuming estate plans are just for the wealthy. Anyone who has assets needs an estate plan. Estate plans are not only about preserving your wealth for your loved ones, it's about planning for end of life issues such as hospice and long term care.

3. Update your will. Changes in family situations such as divorce, child birth or death may change your beneficiaries. Significant changes in your assets, tax law changes and what you intend to leave your loved ones are all reasons to update your will.

4. Use tax planning strategies that can help your loved ones avoid paying more taxes than they should in the event of your death.

5. Keep a copy of your estate plan with your attorney or in a safety deposit box and let your loved ones know where it is. Many times mistakes in carrying out end of life decisions can be avoided simply by family members having access to your plan.

6. Plan adequately for your children. Until you no longer have minor children, provisions must be made in your estate plan for their guardianship.

7. Take stock of all jointly owned accounts and property. Make sure all joint ownerships are accounted for and included in your estate plan.

Tips & Warnings

• A qualified estate planning attorney is the best resource for developing a comprehensive estate plan and keeping it up to date.

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[estatelogic]

on 11/12/2009 Great article. Step 5 - where you keep your documents and instructions - is critical. A new alternative for safely storing the results of the conversation is online.

Executor's Resource (www.ExecutorsResource.com) offers this capability through its program EstateLogic. It helps people organize and safely store the important documents and details that will be needed for settlement along with personal legacy information. At the time of your death, your executor logs in to gain access of your information.