Estate planning might seem like a task you want to complete in the distant future, but smart New Hampshire residents know better. Unfortunately, even the most well-intentioned people can stumble into common traps. These mistakes can unravel your plans, leaving your loved ones struggling to address the unexpected consequences.
By understanding these pitfalls, you will have a better chance to sidestep them easily. To help in this effort, we outline common estate planning mistakes that may significantly impact your estate and inheritors.
Mistakes to avoid
Some people forget to name a secondary or contingent beneficiary in their estate plan. This entity or individual will receive an asset if your primary inheritor passes on before you do.
This step can be critical because if the primary beneficiary dies and you did not assign a contingent beneficiary, the share will revert to the estate. This may even lead to lengthy legal proceedings in probate court.
It is wise to name at least two contingent beneficiaries in your plan. Taking this step may prevent family disputes and allow you to maintain control over who receives your assets when you pass away.
Another common mistake is neglecting to outline details involving nursing home care. Preparing for nursing home care in your estate plan allows you to guide your financial decision-making over a few years. You can set up a special needs trust, which may help you in the future if you require medical care.
It is also essential to name an executor with the skills and knowledge to administer your assets after your death. You do not have to appoint a family member to take on this critical role. If you want to avoid making a mistake when choosing an executor, you can seek the advice of an attorney to brainstorm your options.
Estate planning done right
Estate planning can be complex, but it does not have to be daunting. If you are wondering how to make the process easier, consider working with an experienced attorney. With the proper guidance and careful approach, you can start your estate planning journey with more confidence.
