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Errors people may make in their estate planning

| Mar 23, 2021 | Estate Planning |

There are a number of potential errors New Hampshire residents may make when it comes to their estate planning. For example, a common one is that people create a trust and then forget to fund it. This can make the trust useless.

Communicate with loved ones

Another common error is that people fail to talk to their families about the estate plan. They might give someone the power of attorney over their finances or health care and not inform them, so the powers never get invoked when they need to be. Not talking to loved ones about the plan can also make conflict more likely. Discussing the estate plan ahead of time means they will not be surprised by your choices and may understand why you made them. This discussion can also help prepare your heirs to manage the inheritances they receive.

Keep your plan current

People might also fail to update the estate plan, which needs to be reviewed and changed when there are changes in your assets or your family. For example, you might get a divorce or have a child. There could also be changes in tax law that mean you need to make changes to your plan. When you do make changes, be sure that it is clear what the most recent version of your plan is. You do not want to leave your family in a situation where they are trying to figure out which of two or three wills is the current one.

It is important that people do not procrastinate on creating an estate plan in the first place, but it is just as important that the plan is created correctly and that the necessary people are informed about its contents. This could include talking to people about being executors, trustees and guardians for minor children.


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