Creating an estate plan is a responsible step to take as an adult. It includes things like your will, power of attorney and advanced healthcare directive.
However, some people don’t realize that their estate plan is an evolving legal entity that must be updated and adjusted as changes occur. Unfortunately, many people neglect this part of estate planning. Another issue is that certain parts of the plan are never created, leaving gaps that can be problematic in the future.
Knowing some of the most common oversights can help you avoid issues with your estate plan.
Not being specific when distributing your belongings
When you create your will, you may use a general statement that indicates your children should receive all your possessions when you pass away. While it may seem fine at the time, it opens the distribution process up to a lot of potential conflicts.
To ensure your family doesn’t fight over your belongings after you die, make sure you specify in your will who gets what before you die, particularly if there are sentimental items or family heirlooms involved.
You failed to name beneficiaries to all aspects of your estate plan
You probably listed your beneficiaries in your will for your assets, like your possessions and money. However, what about your retirement account or life insurance policy?
You must name beneficiaries for these, too. If you fail to name a beneficiary to these roles, then they may go into probate, which could take months or longer to resolve.
Avoiding gaps in your estate plan
If you want to avoid gaps in your estate plan, be sure to keep the information here in mind. Knowing your legal options regarding your estate plan and what it can and can’t do is also beneficial.