Things to Avoid When Estate Planning
Writing your Will and ensuring your estate is going to be dealt with correctly can be an emotional but vital part of organising your financial affairs. Once you have made the decision to get your affairs in order it is important that it is done correctly. In reality, many people get it wrong and that can lead to all sorts of problems in the future. Something as simple as letting your family know where your Will is stored can make a big difference. 53% of children confirmed that they had no idea where their parents stored their Wills
These are some of the other mistakes that can be made throughout the process:
Not Considering Sibling Rivalry
While they have usually grown up in a close knit family siblings do not always get on in later life. Even if they are close it is important that you aim to reduce the chances of any disputes. To do this, you should consider having a conversation with all beneficiaries before you finalise your Will. This will ensure that they all know what to expect while giving you the chance to sort out any potential problems at the same time.
Forgetting the Important Changes in Life
It is common for a Will to be written but then not updated as life changes. This means that estates might not be distributed in a way that matches the needs or wishes of the deceased. This could be down to a simple oversight but it can cause a huge number of problems which cannot be rectified without expensive court action and the willingness of all parties involved. Wills should be reviewed regularly, particularly if a major change takes place as the Will should reflect the change.
Not considering the circumstances of your beneficiaries
Although you may know who you want to inherit your estate you might want to consider their own position and circumstances. If they suddenly inherited a large amount of money would there be a detrimental impact on any entitlement to benefits? Would they be vulnerable to third parties claiming a share of their inheritance or maybe they are just not particularly good or experienced at dealing with money. You can include provisions in your Will that will manage how their inheritance is received.
Writing your Will is something that everyone needs to do and is an important part of life. Even after you have created it, it will have to evolve with you and the changes that happen to your circumstances. Taking proper advice when writing your Will can help any potential issues in the future and an experienced Will writer can help identify risks and put provisions in place to avoid them.