Keeping your finances in order is essential to managing your possessions in the event of an unplanned emergency. Make sure you protect your assets and your family during a time of crisis with a properly executed estate plan. Here are a few common ways to avoid an estate planning disaster.
1. Plan Ahead for Disability or Incapacitation. Appointing a person to manage health care and business affairs during a temporary or permanent situation is essential. Without proper documentation, state and local laws will make important decisions for you.
2. Get a Professional to Write Important Documents. Writing your estate planning on your own can often lead to an invalid will. Leave this important step to a professional attorney.
3. Re-examine Your Estate Plan. Changes in laws and family structure can invalidate prior planning. Review your estate plan after a major life event or every five to seven years to avoid an outdated will.
4. Be Honest with Your Estate Planner. A professional estate planner is able to make suggestions to minimize taxes, increase the value of your estate, and to avoid family conflict. These propositions are not possible without disclosing complete information.