Estate planning is one of the steps many people avoid when securing a financial future for their loved ones. It’s understandable that most people don’t want to think about their own demise, but it’s important to develop a detailed plan to avoid estate planning mistakes that may lead to litigation or other problems. If you’re a California resident, here are some essential mistakes that you should be aware of.
Avoiding estate planning altogether
One of the biggest estate planning mistakes that may lead to litigation is to avoid it completely. There are several reasons people avoid planning for their estate. They may think the process is too complicated or have a hard time accepting that one day they will pass away. However, nearly everyone can benefit from some type of estate planning.
Assuming you don’t have the money
Planning for your estate is a task many people think is only for the wealthy. After all, statistics indicate that only around 0.07% of estates are subject to federal estate taxes. It is true that most estate planning techniques may only apply to the rich, but everyone can benefit from an organized estate plan. In some cases, you might want to avoid probate in order to ensure that your financial affairs are not on public record.
Doing it yourself
Another one of the estate planning mistakes that you should avoid is trying to do everything yourself. Applicable state and federal law changes often, so you should consult professionals who have experience with these types of matters.