Most people have never created wills or have no plans to create one, so they’re expected to make mistakes when it’s finally time to write down plans for their estate. Here are some common mistakes and how to avoid them.
Choosing a will instead of a trust
A will describes the ways that your assets must be handled after death. However, wills and trusts have benefits that differ in different situations. A trust is more beneficial to someone who wants to save on taxes and avoid the probate process.
Not updating the will
Whenever a major change happens in life, it’s easy to forget to update your will. After having a fallout with a family member, it’s common to change the will to exclude that person as a beneficiary. If you buy a new home, it will not be transferred to the right person after your death if you don’t update your will.
Not finding the right executor
Selecting the right executor for your will is the most important decision to make. The person must be responsible, patient and dedicated to distributing your estate to your liking. Choosing a distant family member, such as a cousin or grandparent, or friend that you barely know is a common mistake.
Ignoring all types of personal property
Include every valuable item that you own if you care about its whereabouts. The types of personal property are tangible and intangible items that include houses, furniture, cars and clothing in addition to stocks, bonds, patents and copyrights.
Every mistake is avoidable
There are small and big mistakes to avoid, or else parts of your estate will end up in the wrong hands and will not be distributed based on your wishes. However, the worst mistake is never making a will at all, so be sure to do your research when creating an estate plan.