While making an estate plan, there are mistakes people commonly end up making because of ignorance or misinformation, and the secret to avoiding these mistakes is knowing them. The following are top 10 common estate planning mistakes people make and how to avoid them.
Top Mistakes To Avoid In Estate Planning
1. Thinking that estate planning is only for the rich and famous
Many people hold this belief and so leave estate planning because they have only one or a very few assets to their name. Even a car, bank account, or house will have to pass down to a beneficiary, and so there is need to state who you want to be the beneficiary. If not, it may end up in the hands of someone undeserving of it.
2. Only planning for after death situations
Many people think estate planning is only about how your property gets disbursed after your death and so fail to plan for disability, mental incapacity, tax avoidance and end of life situations.