Planning a will gives you the option of directing your assets to certain individuals after you pass. It ensures your children and pets go to good homes and that your loved ones are taken care of. With proper estate and will planning, you can help to avoid a lengthy probate process as well. However, when it comes to planning a will and estate, there are some common mistakes people tend to make. Try to avoid these mistakes for proper planning.
Waiting Too Long to Write the Will
While a will is meant to provide more direction and information to your loved ones after you die, that doesn't mean you should wait until you are an older age or of a certain wealth to make one. Start creating a will at a young age, then update it as needed as the years go on. A very common mistake is waiting too long, then an accident occurs, and your family has to go through lawyers and probate because you procrastinated for too long. After major life events are good times to remind you to write up a will, such as after you get married or when you have children.
Adding Your Child to the Deed
This is another common mistake people make when they attempt to write up their own will instead of getting assistance from an attorney. If you want your child to take over possession of your family home after you pass, you should give it to them in the form of an inheritance, not add their name to the deed. If they are on the deed, that means they currently own the home, which means they are liable for paying a large amount of estate tax after you pass. However, if you give it to them as an inheritance, which is a form of a gift, they get a huge tax break on the house.
Not Adding Digital Assets to the Will
All of your assets should be added to the will, including digital assets. People don't usually forget about property or valuable items that are tangible, but often make the mistake of not including their digital assets. This can be as simple as all online accounts, including the usernames and passwords. This information should be given to your spouse, children, or anyone else who will get your assets. This can be anything from an online business to an online bank account nobody else had access to.
When you are planning your will, make sure you keep updating it as needed throughout your life. It should be updated when you get married or divorced, have children, buy or sell major assets, or change your business structure.