Top estate planning mistakes to avoid
For South Carolina residents who are worrying about estate planning, there are a lot of things to keep track of as well as mistakes to avoid. Correct estate planning can protect wealth as well as reduce stress for the family.
What to consider when estate planning
There are several important pitfalls that can plague estate planners. The most important is waiting too late to plan. The earlier important documents are in place, the easier it will be to create a working and comprehensive plan without scrambling to work out the details. Another major mistake is going it alone.
Family and loved ones need to know the plan and its goals. Leaving them out will lead to confusion and creates the potential for mistakes. The estate plan also needs to be updated occasionally: Key choices like the beneficiaries of retirement accounts and permanent or temporary guardians of children need to be kept up to date.
One of the biggest estate planning mistakes is to neglect the possibility of becoming disabled and unable to make decisions. If there is not a plan with a living will and power of attorney, this can lead to decisions contrary to the intent of the disabled person. Picking the right person to take on responsibilities and writing up detailed goals and expectations are very important.
It’s also important for estate planners to learn about state and federal laws. Tax laws and other regulations change frequently, and that can have major impacts on optimal estate planning.
Estate planning can be an uncomfortable topic, but avoiding it will only make the issue worse. Addressing it head-on and with awareness of the major risks is the best approach.