As you are starting the process of preparing your estate plan, it is important to make sure that you are being as thorough as possible throughout the process of preparing this important document. Otherwise, there could be gaps or other problems in your plan that may not be easily addressed by your inheritors.
Appreciate The Benefits Of A Neutral Executor Of Your Estate
It is important to have a neutral executor for your estate plan. Attempting to leave this role to a family member can lead to a higher risk of mistakes being made as well as causing a greater risk of conflict to arise between your inheritors. By having a neutral executor plan and manage the estate, you can avoid these conflicts while also having the confidence that your estate plan will be overseen by a professional who is experienced with having this responsibility.
Have A Plan For Addressing Any Debt That You Might Be Liable To Pay
Many individuals will fail to fully pay off the debts they may owe before they pass away. If this occurs, then the creditors may be able to seize some of the assets from the estate in order to pay off the remaining balance on the debt. Avoiding this outcome is often as simple as keeping a life insurance policy with enough coverage to pay off any debts that you may have left. However, you will need to thoroughly calculate the amount of debt that you owe to avoid accidentally getting too little coverage to fully erase these debts.
Update The Estate Plan Whenever Your Assets Or Financial Situation Changes
Keeping the estate plan updated is important for making sure that it is as accurate of a representation of your financial situation as possible. Often, individuals will make the error of creating their estate plan and then fail to review it or update it in order to reflect their current financial situation. At a minimum, you should meet with your estate planning attorney once a year or whenever your finances go through major changes. This can include acquiring new assets, assuming more debt, or coming into a windfall.
Unfortunately, most people make the mistake of not updating their financial status regularly, and it can be very serious if an individual passes away unexpectedly. Due to this reality, it is important to remain diligent in keeping this information up-to-date so that your inheritors will be as protected as possible in the event of your untimely or sudden passing. Fortunately, this update may not take more than a few hours of your time.
For more information, contact a local estate planning attorney near you to learn more.