A History Of Growing Trust In Kentucky

Is your estate plan missing something?

On Behalf of | May 22, 2023 | Estate planning

Creating an estate plan is a crucial step in protecting your assets and ensuring that your loved ones are taken care of after you pass away. However, even the most thorough estate plans can be missing something. Reviewing your estate plan regularly and making updates as necessary is important.

Here’s what you should know about some common things many people miss in their estate plans and how to avoid simple mistakes.

Including digital assets

In today’s digital age, many of us have online accounts for social media, email, and financial management. Including these digital assets in your estate plan is essential, as they can hold significant value or sentimental meaning. Document your usernames and passwords, and specify who should have access to these accounts after you pass away. Additionally, consider designating a digital executor responsible for managing your digital assets and closing down accounts.

Updating beneficiary designations

Many people forget to update their beneficiary designations on retirement accounts, life insurance policies, and other financial accounts. If your beneficiary designations are outdated, the wrong person could inherit your assets. You should make sure to review your beneficiary designations regularly and update them as needed to reflect changes in your life, such as a marriage, divorce, or the birth of a child.

Signing your documents

Believe it or not, one of the most common mistakes people make with their estate plans is forgetting to sign their documents. After your lawyer puts together your estate plan, carefully review it and sign all necessary documents. Your estate plan will not be legally binding until you sign it, so this step is crucial.

Naming a guardian for minor children

If you have minor children, it’s essential to name a guardian in your estate plan. This person will be responsible for caring for your children if you pass away before they reach adulthood. Make sure to carefully consider your choice of guardian and discuss your decision with the person you choose to ensure that they are willing and able to take on this responsibility.

Considering long-term care planning

Many people overlook the need for long-term care planning in their estate plans. If you or a loved one requires long-term care, it can quickly deplete your assets and leave your family financially strained. You may also need to consider including a plan for long-term care in your estate plan, such as purchasing long-term care insurance or setting aside funds for this purpose.

Creating an estate plan is an important step in protecting your assets and ensuring that your loved ones are taken care of after you pass away. However, even the most thorough estate plans can be missing something. You can avoid common mistakes and ensure that your estate plan is comprehensive by working with a skilled professional.

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