Estate planning is essential for almost all adults. It ensures your assets are distributed according to your wishes when you die. It also allows you to appoint individuals to make financial and medical decisions on your behalf if you cannot.
With all the components that make up an estate plan, it may be easy to overlook a critical element. Here are some of the most common mistakes people make when creating an estate plan:
1. Not having any plan
One of the biggest mistakes is simply not having an estate plan. Unfortunately, 67% of American adults don’t have one. They may assume that estate planning is only for the wealthy or elderly. But without one, Florida’s intestate laws will determine how your assets are divided, which may not align with your wishes.
2. Failing to update your plan
Life is constantly changing. Marriage, divorce, the birth of a child, or the death of a beneficiary can significantly impact your estate plan. By failing to review and update your plan after life events, your outdated wishes will be executed, potentially leaving out heirs or allocating assets to unintended beneficiaries.
3. Overlooking digital assets
Much of our daily interactions are done online. Digital assets like social media accounts, cryptocurrencies and online banking accounts need to be included in your estate plan to ensure they are handled according to your wishes.
4. Choosing the wrong executor or trustee
The roles of executor and trustee come with significant responsibilities. Choosing someone ill-equipped to meet these duties can hinder the smooth execution of your estate plan. Select someone trustworthy and capable, and ideally, have some financial or legal knowledge.
With so much at stake, you want your estate plan to be comprehensive and legally sound. Working with someone who can tailor your plan to your specific goals will ensure your final wishes are carried out and spare your loved ones from unnecessary stress and confusion.