If you do not have an estate plan already, it is in your interest to create one as soon as possible. The future is unpredictable, and it is prudent for every Ohio adult to have plans in place that will secure his or her financial interests in case the unexpected happens. In your efforts, however, you would be wise to avoid certain estate planning mistakes that could ultimately impact you and your family in the future.
Mistakes will cost you and your loved ones in many ways. They can mean you won’t have control over what happens to your estate or what will happen with your health care in case of a medical emergency. Missteps in the estate planning process could also affect your children and grandchildren after you.
Missteps can be costly
Certain common estate planning missteps could be costly to you in ways you may not expect. In many cases, families do not discover mistakes until it is time to settle the estate or there is an emergency. Some of the things you would be wise to avoid include:
- One major mistake is failing to update plans over time. You should adjust your plans after divorce, remarriage, the birth of new children and other life events.
- It can be a mistake to fail to consider the potential tax implications of your decisions. It is important to ensure your loved ones don’t end up with an unmanageable financial burden.
- Another common mistake is failing to plan for the possibility of a disability or long-term care needs. If you do not plan for this possibility, your family could be in a difficult position.
The most significant mistake is failing to have a plan in the first place. You don’t need to be wealthy, over a certain age or sick to benefit from having plans in place that will protect your interests.
The right plan for you
Every estate plan is different. You can customize an estate plan that will allow you to care for your friends and family and accomplish specific goals you have for your estate. As you make plans for the future, you may want to consider the potential drawbacks and benefits of each choice. It is also helpful to be diligent about avoiding mistakes at every step, which could help secure the interests of you and your loved ones.