A slight mistake when planning an estate can create huge problems for family members and loved ones. Even a slight issue with an estate plan could lead to asset distribution delays, major taxes and disputes.
Do not let a simple estate planning mistake create issues for your family and loved ones. Here are a few things to avoid:
Naming only one beneficiary
While you may have a special person in mind that you wish to name as a beneficiary, naming only one beneficiary could lead to issues. If only one person was named as beneficiary and they are no longer alive to receive benefits, then assets may not be properly distributed. You can name multiple beneficiaries.
Forgetting to validate a will
It is important to have a valid will. For example, a requirement to make a valid will is to have two witnesses – who do not benefit from an estate – sign the will with the testator’s signature. If there is no valid will, then the testator may die intestate. Intestate means that the state is responsible for managing your assets, which could lead to the wrong people benefiting from your estate.
Keeping your plans secret
While an estate plan is a very important document with many private details, it may hinder your family and loved ones if they are not aware of the plans. For instance, an executor should be aware of where your will is located so they can start the process of settling your estate.
To learn more about what to do and what not to do when making an estate plan, you can reach out for legal guidance.