If you are getting older in age and think it is time to start laying out your estate, there is never a wrong time. This article discusses five mistakes people make when organizing their estate and ways to avoid those mistakes. For those who are unfamiliar with estate planning in general it might be easier than not to make at least one of these mistakes. Be sure to read the full article to be an estate planning pro!
Here are five of the most common estate-planning mistakes that can jeopardize your potential for leaving bequests in line with your desires:
1. Not having a will. A 2016 survey by Harris Poll for Rocket Lawyer found that 64 percent of American adults don’t have a will. Nearly half of these people either said they didn’t need one or just haven’t gotten around to it.
Depending on what state you live in and your personal situation, failure to have a will can deliver assets to people other than those you intend. Moreover, the special needs of loved ones that you’re concerned about may not be addressed. The point of a will is to document your wishes.
2. Failing to update your will. Among those who have a will, this is extremely common. All too often, people act as though their wills are set-it-and-forget-it documents that never need to be changed even though their lives change. Let’s say that when you make your will, you leave everything to your spouse, confident that he or she will eventually bequeath what’s left of your estate to the children you’ve had together.
Years later you get divorced but neglect to update your will. As a result, depending on the wording in the document and the state you live in, your estate may not go to your children from your first marriage, who by this time may be grown and have children of their own (who might be deserving beneficiaries themselves).
If you remarry and have more children, the estate division gets even more complicated. As your life circumstances change, your will should, too. A good rule of thumb is to review your will every two years. Take it out of the file and read it carefully.