There are many times when an estate plan may not be as effective as it should be. Lacking key components or forgetting to add a specific asset into your estate plan can be problematic.
The good news is that you can adjust your estate plan once you recognize the red flags. Here are some issues to look for and how to address them.
- Your estate plan is old
The first major red flag for any estate plan is that it’s getting old without any updates. If it has been a decade or two since you last looked it over, then you should be prepared to take a few moments to review it again. Make sure all of your heirs are updated and that any new property is included.
- Your family doesn’t know about your estate plan
The next thing to think about is if your family knows about your estate plan. If your family doesn’t know what you want, then it’s likely that you won’t get what you want. Make sure you include your end-of-life wishes and establish an executor who you can trust.
- You didn’t include all of your assets in the plan
Finally, if you didn’t yet include all of your assets in the estate plan, it’s time to go back over the plan and add them in. You may want to create trusts for some assets or start working on distributing those assets during your lifetime to prevent a problem later.
Estate planning is there to help you in life and after death
Estate planning has a purpose, and that purpose is to help you in life and after death. You should set up your health care proxy and establish your power of attorney documents as well. Make a living will and establish that you know what you want if you get sick or cannot care for yourself any longer.
Your attorney will go over all the parts of your estate plan with you, so that it can be updated to include protections that help you during your life and support your family once you pass.
