Creating an estate plan might seem straightforward, and in some ways it is. However, estate planning can become a little more involved depending on a person's needs, assets and liabilities. This means that people in Florida cannot adopt a one-size-fits-all approach to the process. Here are a few things that individuals might want to watch out for when embarking on their estate planning journey.
One of the most common mistakes is a very easy problem to address. Many people create their wills and then either never or very rarely make changes. Wills generally need to be updated more frequently than most people might think, and making a yearly review is usually a good idea. However, big life changes such as marriage, divorce, the birth of a child or the acquisition of significant property could indicate that an update is needed sooner rather than later.
Another common problem is that individuals forget about planning for future disabilities. Planning for an unexpected disability might feel pessimistic in nature, but the reality is that failing to do so leaves people in financially vulnerable situations. Planning involves more than just making sure there are ways to address related health care costs. Fully accounting for a possible disability also involves making sure there are guardians for minor children and individuals appointed to make important financial and health care decisions.
Additional issues that commonly arise during estate planning include procrastinating, transferring life insurance policies incorrectly and selecting the wrong person to act as executor. Some Florida residents might feel overwhelmed by the list of things that can potentially go wrong and choose to simply do nothing at all, but this is generally not a good idea as it places an enormous burden on families. Instead, speaking with an attorney who is well-versed in estate planning can put some of those fears at ease.