Perhaps you suffered a minor injury in a traffic accident, which was enough to make you think seriously about your future and the future of your family.
That chain of thought led to contemplating estate planning tools like wills and powers of attorney. Here are five mistakes to avoid when you are ready to create an estate plan.
Thinking you have too few assets
Estate plans are not just for the wealthy. You may think you lead a simple life with your spouse and young child, but life is never as simple as it seems. Even if you are a younger person with few assets, you need certain kinds of estate planning documents to clarify how you want those assets managed in the event of your death.
Dying without a will
If you die without creating a will, the state of Colorado will decide who receives your assets. Would you have agreed with the choice of beneficiaries?
Failing to appoint a guardian
It is important for you to name someone to serve as the guardian of your child if you should die and the other parent is also deceased. You will not want the court to make this decision.
Avoiding healthcare decisions
What if the injury you suffered in the vehicle crash had been worse? Your basic estate plan should include a healthcare power of attorney in which you name a trustworthy person to make healthcare decisions on your behalf if you should become incapacitated.
Failing to plan for an update
Once you create your estate plan, do not let it gather dust. Revisit your estate plan every few years and enjoy peace of mind by updating it based on the changes in your life.