Estate planning helps you disperse your assets to your children and loved ones. Even when you have a last will and testament, mistakes on the documents—or a lack of information—can prevent your assets from going where you want them to go.
The biggest problem encountered when passing your estate and assets to your beneficiaries is not having a plan. Good intentions will not get the job done. You need to take inventory of all your assets and decide where you want them to go. Once you have that information, contact an estate-planning attorney for consultation and to understand what methods would best accomplish your goals.
Consider the Needs of Your Beneficiaries
Creating your estate-planning documents when your children are small means their needs and desires will change as they age. Your plans may include releasing some money at certain stages of their life, but these stages can change. They may never get married, go to college, buy a house, or start a business. They may also not be responsible enough to handle large amounts of money. Because of life changes, you need to update your estate plan every three to five years to ensure that it best meets their needs after you are gone.
Talk to Your Beneficiaries
As you make your plans, talk to your beneficiaries and tell them what you intend to do with your assets when you die.
Warren Buffett, one of the richest men in the world, recently said that he would never sign a will until his children have read it and made suggestions. He says it is how he plans to avoid challenges to his will.
Name More Than One Beneficiary
Although you want some of your assets to go to a specific person, there is always the possibility that they could die before you do. If that should happen,
TrustandWill says you should name a contingent beneficiary to cover this potential problem.
