Creating an estate plan is a difficult and lengthy task. Once you set out to complete it, it can take months or even years for you to fully map out every part of your plan and get it to a place that you can find satisfaction with.
In order to streamline the process as much as possible, you should understand what some of the most common types of estate planning mistakes are. This will allow you to avoid them, and thus avoid having to redo any steps.
Understanding your plan
Forbes discusses some of the biggest and most potentially impactful mistakes that people make when planning and working on their estate plans. They start with the most basic of mistakes, such as not understanding all of the legal jargon involved in the creation of your plan. If you come across terms you do not understand, look them up or contact legal help. They know the ins and outs of this language and can help if you do not understand parts.
Keeping it up to date
Most of the other mistakes involve leaving your estate plan alone without making any updates as the months and years go by. For example, you should update your beneficiary designations, asset ownership, power of attorney, or the plan itself. After all, many things can change in a few years, and you want your plan to reflect your most current life circumstances and desires.
You should also coordinate your retirement plans and trusts. If you are not careful with your designations, you can actually accelerate or emphasize taxes, creating more trouble for your loved ones.