Creating an estate plan is the responsible thing to do as an adult. However, there are situations when your estate plan may be missing something.
With so many documents that go into these plans, it is easy to forget or neglect important parts. Here are some of the most common “missing parts” in modern estate plans:
1. Forgotten updates after a move
It is not uncommon for people to move from one state to another. This may be closer to family, for a job or another reason. No matter the reason for the move, you need to review your estate plan to ensure it meets all the legal requirements in the state where you have moved. If it does not and you pass away, your estate plan may be deemed invalid.
2. Outdated beneficiary designations
Things like your insurance policy and retirement account allow you to name a beneficiary in them. This means that you do not have to name them in your estate plan. However, if you don’t name a beneficiary and leave it out of your will, then these things will likely go through probate, which can delay the distribution of assets to your family after you pass away.
3. Unclear directions about your assets
Leave general directions in your will or estate documents about what your children receive when you die. This could lead to disagreements. To avoid this, be as specific as possible when it comes to leaving items to your family members.
When it comes to creating an estate plan, there are more than a few factors to consider. Be sure to keep things updated and make sure you aren’t missing anything. Knowing all the legal requirements that go into a good estate plan will help with this.