Updated: Dec 2, 2021
We all want to do what’s best for our loved ones. Part of that includes diligently planning our estates to make our passing as easy for them as possible, to eliminate unnecessary taxes, and to avoid the probate court system.
Considering our own mortality can be tough, but wouldn’t it be fulfilling to know we’ve done everything we can for our loved ones?
Here are 5 of the biggest Estate Planning Errors we can make. Do any of them apply to you?
Financial procrastination is an unhealthy habit that can prevent us from building wealth and living our best lives. While it’s important to have your plan in place before passing on, it’s vital to understand that the due date for many planning tasks come earlier in life.
Not Planning for Long Term Care
Long Term Care insurance provides a prime example of financial procrastination. Some people don’t care to obtain long term care insurance until they’re diagnosed with a disease which makes them uninsurable and all but guarantees their stay in an assisted living center later in life. Our good health isn’t guaranteed and that’s exactly why we purchase long term care insurance while we can still pass the medical exam.
Not Updating Outdated Wills & Forms
It’s crucial to keep your plan and all documents in it up to date. This helps ensure they’ll perform their role as intended.
The systems functioning within an estate plan should act as a coordinated effort. If beneficiaries aren’t kept up to date this can have a negative impact on your loved ones. Listing contingent beneficiaries can help alleviate this issue, but regardless, beneficiaries should be reviewed each year.
Forgetting about taxes
Consider what your estate will pay in taxes as well as how your gifts will affect your heirs’ taxes. Without careful planning, your heirs and your estate might pay the Internal Revenue Service unnecessary taxes.
If you thought anything on this list applied to you, let’s talk about it.
To meet with Michael Romanello over a phone call, Zoom, or in office meeting and discuss your estate plan click or call 440-871-3067