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3 estate planning errors to avoid

On Behalf of | Oct 14, 2024 | Estate Planning

When you make an estate plan, it is important to get it right and keep it right. Any errors in your plan could make things complicated for the executor and your family when you die. 

Here are a few common errors that people make:

1. Forgetting to add someone to the plan

Many parents set up their estate plans to split things between their children. If those children go on to have grandchildren, they may also want to leave them something too.

If this is the idea you have, you need to be sure to update the plan every time a new child (or grandchild) is born. Otherwise, there could be a situation where most of the children (or grandchildren) receive things when you die, but the latest addition to the family does not.

2. Forgetting to remove someone from the plan when they die

As well as adding newborns into your plan, you must remember to remove anyone who dies. This does not just apply to beneficiaries. It also applies to those you allocate positions of responsibility – a deceased executor or power of attorney cannot fulfill their role and you need to replace them.

3. Forgetting to update a beneficiary designation

People often remember to make changes to their will and any trusts they have but forget that they have other assets not covered by either of those. Some assets, such as life insurance policies require you to designate a beneficiary when you create them. The name you put down will receive that asset when you die, even if your will says differently. So, if you designate your spouse of the time and forget to change the paperwork, they will still receive that asset even if you remarry and update your will multiple times.

Appropriate guidance can reduce the chance of errors in your estate plan.

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