Common Estate Planning Mistakes

While creating an estate plan is not at the top of everyone’s to-do list, it is important.  Yet, oftentimes when people do get around to making their after-death arrangements, there are a multitude of ways they can stumble.  Below are some classic estate planning mistakes people tend to make, so you will know what not to do when it comes to your own plan.

1. Assuming Estate Plans Are Only for Wealthy.  Estate planning is for anyone who wants to know what will happen to their end-of-life medical care, assets, children or private affairs if they become incapacitated or die.  In other words, this includes all of us.  “Absolutely everyone, 18 and older, needs an estate plan, no matter his or her net worth.”
2. Thinking Your Finances Are Too Simple for an Estate Plan. No one’s life is as simple as it may seem, and even if it is, you should still consider putting protections in place to help ensure your wishes are known.
3. Procrastinating on Your Estate Plan.  For peace of mind, it is best to start the process earlier.  It is a great way to reduce familial stress when you are no longer in a position to make decisions.
4. Neglecting Digital Assets.  Do not forget to tell your loved ones about your digital assets.  This may include making arrangements to transfer passwords and digital copies of important documents.
5. Forgetting About Your Pets. Your pets are personal property so you should take the time to spell out who will be responsible for them.  Pet trusts can help you set aside money to outline how you will pay for their care. 

See Sheryl Nance-Nash, 7 Common Estate-Planning Blunders Not to Make, Forbes, Sept. 15, 2014.