Do you have assets that you would love to leave to your loved ones after you pass on? Have you decided on how you would like the estate to be distributed? Estate planning is crucial since it ensures that your assets are distributed to your loved ones when you pass on. Estate planning also assures you that your loved ones will be provided for in your absence. Unfortunately, most people make mistakes when planning an estate, resulting in confusion, financial loss, and disputes among loved ones. This is why you must be very careful to ensure this does not happen to you when estate planning.
Mistakes Should You Avoid When Estate Planning in Canberra
When estate planning, it is always important to do things correctly to avoid minor or major issues that may arise in your absence. Therefore, you have to ensure that you do not make the following mistakes when you are estate planning in Canberra;
- Not creating a plan
This is one of the most common mistakes people make when planning an estate. Most people fail to come up with a plan since they think they have so much time to develop it. However, you should know that unexpected illnesses and accidents may occur at any time. If this happens and you don’t have an estate plan, your estate will be distributed to your loved ones according to state laws. This may be done in a way that may not align with your wishes. It may also result in higher costs, delays or family disputes.
- Failing to update the estate plan regularly
An estate plan needs to be updated to reflect any life changes that occur in your life, including the birth of a child or children, divorce, marriage, or the passing on of a beneficiary. When you fail to update your estate plan regularly, as most people do, you will have confusion in your estate plan, and this may result in disputes among the heirs.
- Having inconsistent beneficiary designations
When estate planning, you must ensure consistent beneficiary designations, insurance policies and financial accounts. Unfortunately, most people fail to review their beneficiary designations regularly, especially after major life events. By failing to do so, they have an estate plan where their wishes are not reflected.
- Failing to have a plan for incapacity
When most people are estate planning, they dwell so much on what should happen when they die and fail to plan on what happens when they are incapacitated. Therefore, if such a time comes, they have nobody to make crucial decisions like healthcare or financial decisions on their behalf. This is among the mistakes you should avoid, and designate a power of attorney for someone you trust. By doing so, I will have someone to specify your wish, especially during medical treatment when incapacitated. This way, your loved ones and healthcare providers will be guided on what to do.
- Not considering taxes
Your estate may be subject to state or federal taxes, depending on how big or small the estate is. When you properly plan your estate, I can reduce your taxes, ensuring that your heirs get most of your assets. Unfortunately, most people always forget to consider their taxes, which leads to tax implications for their heirs.
You can avoid making all the above mistakes when estate planning in Canberra, especially if you have someone offering expert guidance and advice. Thus, it would help if you considered looking for estate lawyers to help you through estate planning. Get in touch with the best estate planning experts in Canberra.
