There are many myths and misconceptions about estate planning. Some of these lead to estate planning mistakes. Being able to protect your assets and the future of your family is something that should be taken very seriously. Mistakes are not really something that can be afforded in creating an estate plan.
Find out what the top common mistakes are and how to avoid them:
1. Believing in the myth that estate planning is only for the super rich.
This is far from true and a misconception that leads to unprotected estates. Everyone should have an estate plan. Even if you believe your estate is nominal, you should protect your hard-earned assets. You may think your estate is too simple to require a will or trust but that is far from the truth. There are tax consequences, beneficiaries and unexpected scenarios (suppose you become incapacitated) all of which if go unattended lead to complex issues for loved ones.
2. Waiting to get an estate plan for when “the time is right.”
There is no better time than right now to get an estate plan. No one is immune to the circumstances of death or incapacitation. Young or old, sick or healthy you should seek the help of a professional right away to start getting your affairs in order. Because the moment it becomes too late, there really is no going back to fix the mistake of waiting too long.
3. Forgetting about those online accounts.
Many of us have accounts online. In fact, more and more people have almost all of their accounts online whether savings, IRA, mutual funds or brokerage accounts. These are all important assets to consider. However, many people do not let loved ones (such as a spouse) know about these assets. They can actually go on completely forgotten or can prolong the probate process. Be sure to have good communication with a trusted loved one about your finances and where all accounts are located.
For answers to your estate planning questions and how to avoid these types of mistakes, consult with an experienced estate planning lawyer in California.