When it comes to estate planning, there are some big mistakes that you should take pains to avoid.
Problems can begin when parents and their offspring haven’t talked about the subject. And even when they do, they often don’t get into the proper level of detail.
There can be hurt feelings and misunderstandings as children often view the amount of money each one gets as how much each one was loved.
An article I saw recently on dailyfinance.com lists some of the biggest mistakes that can be made when it comes to estate planning. I thought it would be good to summarize them for you here, and if you want to read the entire story you can click on the link.
Mistakes to avoid:
1) Failing to plan. The article tells the story of a grandfather whose grandson had put his life on hold to care for the grandfather, yet the grandfather made no estate plans, so when she died, the grandson got no inheritance.
2) Simple administrative details can get in the way. This is illustrated by the story of a woman whose entire estate went to her new husband, with nothing going to her kids, because she forgot to update her beneficiary designation.
3) Sibling squabbles. Two children ended up fighting over possessions because their mother’s will did not leave specific items to specific children.
Getting the plan that is right for you takes some time and thought – I call this stage the “Design Meeting.” In some cases, the Design Meeting may actually be two or three separate meetings. But the important thing is that the final documents actually reflect your wishes.