Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death.
If you are thinking about creating an estate plan, you may want to achieve one or more of the following goals: Protect your assets if you are unable to work, and Create the most traumatic transition for your loved ones when you die. You can find the best estate planning advice via www.jonpurnell.co.uk/long-term-planning.
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Here are some common estate planning mistakes:
1: Letting the terms of your will conflict with the designation of the beneficiary of your estate.
Why it's wrong: The designation of your beneficiary is against your will. For example, if your will states that your two children will share everything equally, but you designate only one child as your greatest beneficiary, that child will inherit the entire estate.
How to avoid it: Check all your recipients' designations and make sure they're what you want them to be.
2: Trusting that a will protect you if you become disabled.
Why it's wrong: Wills are just instruments of death. It's a plan that describes who gets to what assets after you leave. A will has absolutely nothing to do with what happens if you become incapacitated.
How to avoid it: Establish alternate medical care (health authorities) to ensure that if you are unable to work, someone you know and trust can make your medical decisions. Create a permanent power of attorney to appoint someone to make your financial decisions, or create and fund a revocable living trust.