Estate plans are not exclusively for the rich; everyone has something that needs to be arranged when the inevitable happens. These are valuable assets that you will want the members of your family to have, but sometimes many people do not handle their estate plans well enough. Here are the most common estate planning mistakes people often do.
1. Not updating the plan.
In the course of a lifetime, there will be inevitable changes. People experience deaths, divorces and births. Updating your plan should include these changes but also ensures the property you leave behind is equitably shared among the intended beneficiaries.
You should update your estate plan annually or quarterly, but many estate lawyers often recommend updating it every three to five years, or when a significant life event happens. In such cases, it’s best to consult a lawyer.
2. Not planning for contingencies.
Disability, death, or any other mishap can never be avoided. When they occur, they can have a significant impact on your personal life and finances. It’s when you will need a trusted estate attorney or trustee. They can help you to make critical financial decisions but also help you care for your family even after you pass away.
3. Not hiring professionals.
In Denver, many probate attorneys offer affordable estate planning fees. They can handle your finances and property documentation, records, and other legal aspects. Not only are these professionals important in drafting a comprehensive plan, but they also provide advice on who could take care of your loved ones when you can’t.
Most people will prefer a will to an estate plan. However, a will is just a small part of an estate plan. Unlike a will, an estate plan offers full protection of your heirs and beneficiaries in case of infringement by parties outside the family circles.