Estate planning allows you to specify what should happen with your assets when you pass on. Knowing that your loved ones will be taken care of offers significant peace of mind. Establishing a living will or trust is a complicated process that requires significant paperwork, however. Avoid these errors to assure your family’s future security.

5 Common Estate Planning Mistakes

1. Forgetting Assets

The first step of an estate plan is listing all of your assets. This doesn’t just include property, cars, and other tangible items. Assets also encompass your individual retirement account, 401(k), investment portfolio, and savings—all of those nonconcrete valuables you have accumulated.

2. Neglecting Guardianship

Most parents leave their wealth to their children. If your kids are minors, you must also appoint a guardian to care for them. Additionally, you need to designate a trustworthy individual to handle their finances until they are old enough to do so themselves. This does not have to be the same person as the guardian.

3. Ignoring Taxes & Fees

Do the math to figure out what administrative fees and taxes your estate will be subject to. With advanced preparation, you can cut down on this financial burden. Many people prefer a trust over a will, for instance, because a trust avoids the probate process, which can be costly.

4. Omitting a Residuary Clause

Even with detailed attention, you can’t guarantee your estate plan will cover everything you own. After all of the specific gifts are accounted for, a residuary clause encompasses the remainder—such as a tiny plot of land on a neighboring property or the family heirlooms sitting in a storage center that slipped your mind.

5. Failing to Update Estate Planning

Revisit your paperwork annually to ensure it still conforms to your wishes. Do you have new assets? Has a beneficiary passed away before you? Have you gone through a divorce or gotten remarried? Changes in your life mean changes in your documents.

For experienced guidance in estate planning issues, trust Dennis P. Faller, Attorney at Law. Located in Wapakoneta, OH, he has been serving residents of Mercer, Logan, and Auglaize counties since 1979. He and his team don’t take a one-size-fits-all approach to their work. Instead, they take the time to understand your situation and discuss your preferences, so they can provide the tailor-made legal advice you deserve. Get a full overview of their services online, or call (419) 738-4578 to schedule an appointment.