There are many different aspects of estate planning, and we want to make sure to look at all of the different parts for you. Here we continue from part one and go over more myths and misconceptions for you, so you ensure your estate plan will be set and ready to go after you pass.
I Don’t Need to Coordinate My Retirement Accounts or Insurance Policies
It may seem obvious that your 401k and life insurance plans are associated with your estate, but they still need to be included when planning out your beneficiaries and asset divisions. Make sure to match the person listed in your estate plan to the designated person that will receive money in the actual accounts.
I Don’t Need to Think of Potential Scenarios
Planning for the worst and expecting the best is a great mindset to have when thinking about your estate plan. You should take into consideration the possibility of something going wrong and have the right plan in place if that happens, such as:
- The person you hoped to get your assets passes away.
- Your power of attorney are no longer capable of making his/her decisions.
- Your beneficiary passes away.
I Only Need to Speak to My Attorney
There is always a possibility that something will happen to your attorney that doesn’t allow them to speak on your behalf whether they become incapacitated or passes away. You want to be sure to establish executors and to speak with your heirs and loved ones about your plans. There are always situations that play out where a loved one dies, and his/her children immediately begin to divide up personal possessions. This includes closing bank accounts and dispersing personal assets. You want to avoid this from happening by letting your loved ones know what you’re planning and the steps you’d like to take after you pass.
Trying to Please Everyone
Even when if you take the time to create a will and divide your assets, someone will still be unhappy. When you start to divide up your personal assets and thinking about who you want them to go to, you’re going to realize the way you are dividing everything up will upset certain people, especially when it comes to money and family. In the end, this is your estate, and you should take care of it as you see fit and try to avoid stress by mapping out the distribution of your assets ahead of time.
Now that you have all the information on the myths and misconceptions about estate planning, read further with this blog, “3 Common Estate Planning Mistakes.” If you are ready to start your estate plan, give me a call today at Paula Smith Law. We have years of experience in estate planning, and we can answer any questions you may have.