Ideally, your property and possessions get distributed among your beneficiaries according to your wishes when you pass away. For this to happen smoothly, a solid estate plan should be in place.
Even when people try to plan ahead, mistakes often lead to headaches for those left behind who must sort through the mess. People often do not realize that estate planning goes beyond writing a will. A will is an essential first step in estate planning, but people often forget additional vital steps.
List contingent beneficiaries
Many people fail to consider that a beneficiary they name in their will or on an insurance policy may pass away before they do. Whenever filling out a form where you must list a beneficiary, you should always list a contingent beneficiary.
Unexpected events can occur that can impact your ability to make decisions for yourself. When you create a will, you should establish a Power of Attorney for Health Care who can make medical decisions on your behalf if you become unable to do so due to injury or illness.
Update your plan
What you will leave behind changes along with your life. Whenever your financial situation significantly changes, you should revisit your estate plan to consider necessary changes. When your family grows or reduces in size, update the heirs and beneficiaries named in your will.
Nobody wants to think about death. The end of life is an upsetting subject. The biggest mistake in estate planning is to fail to plan at all, which often happens when people avoid the task out of discomfort.