It is vital to have an estate plan, even for recent college graduates, but it is even more important to have a well-written estate plan. Do you know which blunders to avoid while tending to the task?
Kiplinger explores common estate planning missteps. Explore them to understand how to give your future self and your beneficiaries true peace of mind.
Failing to update your plan over time
After drafting a viable plan, return to it every couple of years to ensure that it meets your most-recent needs. For instance, if you marry, divorce or have a child, those life events affect your estate plan. Having an outdated estate plan in place may become the equivalent of not having a plan at all. No matter how minor the life change, such as moving to a new state, consider how it may impact your estate plan.
Having a loose plan
Do not stop at creating a will for your estate. Take things one step further and choose a power of attorney, healthcare proxy and estate executor. By not creating an in-depth framework for your legacy, you leave room for state probate and succession laws to decide how to handle your estate, which you may not like.
Not accounting for long-term care or disability
You may be in great health now, but that may change in the decades or even years ahead. Create an estate plan that offers financial support for long-term care, disability and anything else that may prevent you from taking care of yourself. Linking the right insurance policy with your estate plan may help with your overall peace of mind and quality of life in your golden years.