Estate planning is one of the most essential things you should do before your sunset years. Not only may it help you you be able to distribute your estate fairly, but you may also ensure your property is well-managed in your absence.
If not handled correctly, the process could be a source of contention among your children and other family members. To help mitigate issues in the future, there are some common estate planning mistakes you may wish to avoid.
Not planning for your estate
Death is inevitable, and that is why it is important to have a written plan for your assets. This helps to ensure all your assets end up in the right hands.
Not updating your plan when the need arises
You need to review and update your estate plan whenever major changes occur in your family and properties. This ensures that every aspect of the estate is properly handled.
Choosing the wrong person to handle your property
It is common for most people to choose a close family member, a spouse or a child as the manager of their property. Unfortunately, this may not be the ideal decision, since the person you choose may lack proper skills and technical know-how to help steer the growth and development of your estate.
Failing to plan for disability
In the event that you become disabled and unable to carry on with normal duties, it may be hard to make crucial decisions. As a result, you need to put in place measures that will ensure both your family and properties are well taken care of.
Having liquid assets is important, as it helps to ensure your property is smoothly shared among your heirs, and to pay any outstanding debts. Moreover, if you own a business, your heirs may have an adequate amount of cash to manage it after you pass away. The right estate plan may help your family in many ways during this difficult time.