When it comes to planning your estate, you want it to be as smooth as possible. For this to happen, you need to prepare your estate plan properly.
According to MetLife, some mistakes can cause confusion and stress after you die.
Fighting amongst family members
Your estate plan should have specific details on what you want your loved ones to do with your assets after you die.
You should document your wishes and ensure you include all important components. For example, you should consider the following:
- Durable financial power of attorney
- Healthcare power of attorney
- Last will and testament
- Living will
Your estate plan should include plans for your healthcare, finances, and how you want to disperse your assets.
Forgetting assets in your plan
Be careful not to forget any assets in your estate plan. If you have an IRA, insurance policy or 401(k), then you need to keep your beneficiaries updated about these accounts. In addition, remember your digital assets. Most people have digital photos and social media accounts. Your service provider will not disclose your passwords. You have to put your digital accounts into your estate plan.
Losing money to probate
When you have a will, probate is the process that verifies your will. Unfortunately, probate is an expensive and slow process. In addition, probate is a public record. If you want to keep your estate plan private after you die, you cannot do so if your estate goes through probate. To avoid probate, you may want to consider a trust.
When it comes to your estate plan, you need to stay proactive to avoid different mistakes.