2 Major Mistakes To Avoid With The Estate Planning Process

On Behalf of | Sep 27, 2017 | Firm News

When it comes to estate planning in St. Paul, what you do not know or do can have a negative impact on you and your loved ones for many years to come. The purpose of making an estate plan is to provide for your family future. If you do not structure those plans carefully, you could end up with some complications that can diminish your estate’s value and make to harder for your relatives to receive their inheritances without complications.

If you do not want the court to determine how to allocate everything you have worked so hard for, you should start making plans to protect your assets. Here are some mistakes to avoid during the estate planning process.

Only having a will

You do not know what the future holds, but you can make preparations to make it more predictable and stable for your loved ones after you die. However, because a will only provides instructions on how to divide your assets and does not offer you any protection while you are alive, you need more than a simple will to protect your legacy.

It is important for you to consider the fact that you may live longer than you think. The older you get, the more likely you are to develop health complications and ailments that can affect your ability to manage your affairs and make decisions about your health and well-being. You should consider using documents such as health care directives and powers of attorney that help to preserve your interests and control over your financial and health affairs as you age.

Not preparing for long-term care expenses

If you become incapacitated, who will take care of you and how will you afford the care you need? Do not assume that a loved one will be your caregiver. You may need a higher level of care that your relative is unable to provide. You may require professional medical or long-term care. Most health insurance plans do not include long-term care.

Instead of spending all your wealth on your care, you can protect it with options such as trusts. By including provisions in your estate plans for your long-term care costs, you can preserve more of your assets for your beneficiaries.