Everyone in the Dayton area can benefit from estate planning. However, if you are a high-net-worth individual, it is crucial to ensure that the assets you worked so hard to accumulate are secure for your loved ones. A well-executed estate plan can provide peace of mind.
In order to ensure the proper execution of your final wishes, you should avoid common mistakes such as the following.
1. Not informing loved ones
One goal of estate plans is to prevent conflict and hurt feelings and provide for your loved ones after you die. You might decide it is best to leave more assets to one child or relative than the other, but your heirs probably have expectations about what they are to receive. You should discuss your estate plans with your family members to prevent discord and disputes. Make them aware of your wishes and reasons for them. If you want any of your relatives to take on certain roles, such as executor, power of attorney or guardianship, let them know so they can make their concerns known and prepare themselves.
2. Not considering factors that may deplete inheritances
To preserve your wealth, you need to do more than designate who receives it. Estate planning also allows you to minimize taxes and protect your relatives’ inheritances from creditors, ex-spouses and stepchildren.
3. Not reviewing and updating
Essentially, estate plans are living documents that require continuous updating. Any time a major life event, such as marriage, birth, death, business loss or changes in income and assets occur, you should update your estate plans to reflect those adjustments. If you do not, you risk disputes, conflict between family members and the likelihood of some other unintended party benefitting from your estate plans.
Many high-asset people think they can create a simple will to preserve their wealth, but wills are just one of many important estate planning documents. There are many tools you can use to protect your loved ones’ inheritances. It is imperative for you to use every possible resource to protect and secure your wealth for your loved ones.