4 Estate Planning Blunders to Avoid at All Costs

Estate planning is the collective term given to the processes that are undertaken to manage an individual’s estate following their death. The estate planning procedure includes the formation of a will and setting up trusts and donating to charitable organizations (donating to charity is a tactic used to limit taxes). The process also requires the estate holder to name executors and beneficiaries. The final step is to set aside a certain amount for funeral arrangements.

Planning for one’s demise isn’t easy and can appear to be rather confusing. However, our estate planning attorneys suggest that ignoring it for later can give rise to some unpleasant situations.

In fact, estate planning severely impacts the financial legacy that you leave behind. However uncomfortable it makes you feel, invest time and effort in the planning process.

Estate Planning Mistakes You Should Not Make

Don’t Procrastinate Financial Planning

Any concept that invokes our mortality is a rather unpleasant experience for many of us. Quite a few of us keep putting the planning off because preparing for the end of our life seems ominous. Conversing with a few estate owners, we even discovered that many of them are oddly superstitious in this regard.

Another finding was that a lot of young to middle-aged people think that they have enough time and cast away estate planning as the domain of the elderly.

A will ensures that your assets are divvied up exactly as you intended and not subject to state rules.

Don’t Forget to Update Your Plans

Keep in mind that estate planning isn’t something you do once in your life and then forget about. Your estate plans should reflect the major events in your life as they happen (birth, death, or incapacitation of beneficiaries). Over the years, your goals may change, make sure your plan bears witness to the changing mindset. With time, even public policies are subject to change. This too should be incorporated into the estate plan.

Don’t Fail to Account for Retirement and Long Term Care

Following retirement, a huge percentage of the elderly generation needs to be placed under long-term care. Studies have revealed that post-retirement long-term care is terribly underfunded. An estate plan that doesn’t account for long-term care and health aid is a plan that is set to fail. We suggest talking to a financial advisor to discuss long-term care insurance.

Estates Lacking Liquidity

Liquidity is an important part of your asset in life and especially in death. An estate that needs to be split among multiple heirs (surviving spouses, children, other beneficiaries) should have the proper amount of liquidity.

If you are a business owner, liquidity ensures that the heir has enough cash to resume business operations swiftly after your death. Liquidity is also a key factor in the success of any buy-sell agreements that you may have set up. Determining the amount of liquidity your estate should have can be hard work for the layman. Instead, hire a trusted advisor to guide you.

Find The Best Estate Planning Attorney With Reneau Law Group

Reneau Law Group promises estate planning attorneys that value quality client representation above all else. The brainchild of Oklahoma city’s very own Mr.Roger Reneau, the Reneau law group has delivered excellent results over and over again. Visit our website to contact us!

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.