Believe it or not, almost all of us have an estate and it is not necessarily going to be worth millions of pounds. It could be anything – your home, bank balance, car, investments, furniture, an insurance policy or even those priceless sentimental items in your home. No matter how much real estate you have, you can’t take it to the grave.
Now, when it’s obvious that one of your relatives will be in-charge of all your properties after your death, why not you choose the person yourself. By creating an estate plan or Will, you can nominate the people who will be the beneficiary of your property after you.
For that, you only have to make a Will to define the distribution of your assets after you’re gone. And if you want to make it by yourself, you can read our page how to make a will at home. Most people get impulsive while making an estate plan and make some mistakes that they later regret.
In this post, we have listed common estate planning mistakes. Read on to make sure you are not making any of them:
1. Not making a living trust
When you met an estate lawyer, the first thing they may mention is creating a living trust. It not only allows you to hire a guardian for your kids but also give them the power of attorney after your death. But before all that, it makes sure that your wishes are met when you are living even if you are not fine mentally.
2. Not updating your beneficiaries designations
You will never wish that all your money of the insurance policy or from your bank account will go to your ex-husband or wife instead of your current spouse after your death. So when you get married or divorced, make sure that the addition or removal of the person from your life is updated in your Will as well.
3. Changing a plan document and making mistakes
If you want to make changes in your estate plan, then create a new copy with the updated text. Crossing the existing words and writing the new ones at the same place in the same paper is a terrible mistake and you should certainly save yourself from doing so. Because this way you will only be creating the chances of challenges on your Will and nothing else.
4. Ignoring disability or injury
If someone has injured you because of their negligence, then this could directly impact your financial stability. Now, if you receive some amount as a settlement for the injury, the odds are that some of the money left after your death. In that case, you have to mention in your Will that who will own this settlement money after you. Similarly, if you win an injury case and receive compensation, then the owner of the money after you have to be spelt out in the estate plan to make everything clear.
5. Including vague language
If you are not sure about whether or not should you use language in the estate plan, put the language in. It is always good to include as many details in a Will as you can. This will help people understand your wishes more clearly and in an accurate manner.
6. Not reviewing your plan from time to time
You don’t need to wait for a significant moment in your life to update your estate plan. It’s good to visit your solicitor to update your estate plan periodically. You never know when the government will implement new taxes or make changes to the existing guidelines. Reviewing your plan often will help you keep it in line with your financial wishes.
It’s never too late to create a Will or estate plan. And if you are married and have kids, then it’s ideal for you to have an estate plan to support them financially after you’re gone. So contact an attorney today and create an estate plan if you have not created a one yet.