One of the most important things you should do when creating your estate plans in Charlotte is anticipate potential problems your heirs may encounter. It is easy to assume estate planning is strictly for your benefit. However, your estate plans also have a big impact on the people who will inherit from them.
The wrong plans can lead to mistakes and a reduction in your estate’s value, rob your loved ones of their inheritances and cause your estate to be administered differently than the instructions you leave behind. Take some time to look over the following estate planning mistakes you should avoid:
Forgetting about taxes
Upon your death, everything you leave behind is subject to taxation. To prevent unwanted tax problems with your estate that could reduce its value, you should work with a financial advisor who can go over your situation in detail to inform you about potential taxes your estate may have. If you do not want your loved ones trying to figure out how to settle your estate debts and other related expenses, you should make sure all estate accounts are properly funded to cover any potential debts and taxes so your heirs will not have to.
Not regularly reviewing and updating
Some people like to do their estate plans early on so they do not have to think about them again. Not reviewing and updating such plans can lead to the wrong people inheriting your estate. Outdated estate plans may not accurately reflect your most current wishes. They could also lead to lengthy disputes, hurt feelings and other complications with your estate.
Not choosing the right executor
Do not overlook choosing a trustee. You may want to consider several successor executors so you do not have to worry about who will be in charge of your estate when you die. Not choosing a good trustee, or one at all, may result in the courts having to choose one for you.
Forgetting about end-of-life needs
The older you become, the higher the chances of you becoming sick or critically injured. Even though you expect to be in good health, you should include in your estate plans provisions for your care. Be sure to choose someone you trust to act as your financial representative and health care proxy in the form of a power of attorney. You can also leave instructions about the kind of decisions this person can and cannot make for you and types of medical treatments you do not want.
Estate planning is not just for the rich and famous. It is suitable for anyone who has something to leave behind to loved ones and who does not want to leave end-of-life financial and medical affairs up to random strangers. Carefully think out your estate plans and review them periodically to ensure they clearly communicate your intentions with your loved ones and prevent complications.