People undergo estate planning when they feel that they are nearing the twilight of their lifetime. This ensures that their loved ones would get a fair share of all their estate once the unexpected happens. That being said, such a process may not be straightforward; thus, even those who are going to go through the process may commit mistakes that may compromise the fair distribution of their estate once they are gone.
If you do not want to commit the same mistakes that others have, you must be familiar with the most common ones. Below are just a few examples to help you identify and avoid them in the long run.
1. Failing to Take Care of Your Health
One of the biggest mistakes that one could make during the estate planning process is not taking care of your health. When you become healthier, you would be in a better state of mind to make plans to distribute your cash and assets, thus freeing your loved ones from following vague instructions or uneven distributions of your estate.
Suppose you want to avoid the same mistake. In that case, you must ensure that you are in good condition to guide your hired representative so that they can also execute your instructions and carry out your plans concisely by the time that you pass.
2. Failing to Document All Your Assets
Another mistake that people often commit is not documenting all their assets. The fact that they fail to do so means that they will not be able to determine which of them belongs to which family member. When the inevitable happens, there is a possibility that the family will not be able to get a fair share of the estate because the deceased may have forgotten to take note of it.
One way to avoid this is by doing thorough research and documenting all the assets you own that could be beneficial to your loved ones after your death.
3. Failing to Leave Your Estate to Your Loved Ones
Believe it or not, another mistake people often commit is failing to leave their estate to their loved ones. This is typically the result of them not being prepared well enough during the prime of their health. The fact is that not many people have a will. If the family of the deceased will fight over the small amounts of money left by the person, it may be difficult for them to get a fair share.
4. Failing to Recognise the Importance of Estate Planning
Perhaps the biggest mistake you encounter with some people is that they do not understand the importance of estate planning. They do not see the need, and they think that they are still young; thus, they do not see a reason to do so.
That being said, you must be aware that there is no specific age when it comes to planning for your future. Make sure that you avoid committing this same mistake by starting your estate planning early.
Conclusion
As you can see, there are many mistakes that someone could commit during the estate planning process. With that, it is highly recommended to hire someone who specialises in the same field. For example, you could hire an estate planning lawyer to help you with the process, someone who can walk you through the steps without much hassle. You may even ask them to help you create a will or trust to guide your loved ones even after you’re gone.
If you are looking for experienced advisers who specialise in estate planning on the Gold Coast, look no further than our experts here at New Wave Financial Planning. We offer budgeting and cash flow, superannuation advice, insurance, amongst other things. Call us today and let us discuss about your estate planning options.
