A lot of people make the mistake of thinking that the estate planning process is straightforward, simple, and something that they can put off until much later in life.
But the reality is that estate planning can be rather complex, especially if you have significant assets, complicated family dynamics, or an intricate vision of what you want for the future. And it’s something that you’re better off creating sooner rather than later.
That’s why it’s imperative that you know the ins and outs of the estate planning process, or at least have someone knowledgeable on your side, so that you can make the decisions that are right for you and your family.
When people engage in the estate planning process, though, all too often they overlook key aspects of asset protection and shielding their own wellbeing. Glazing over these areas can put your assets and your loved ones at risk, too, which is, of course, something you don’t want to do. So, let’s take few minutes to look at these often-overlooked areas of the estate planning process so that you know where you need to devote some extra attention.
Don’t miss these often-overlooked estate planning issues
There’s a lot that goes into estate planning. And the process can be intricately detailed. But don’t rush to finalize the process and miss out on addressing these issues:
- The potential for incapacity: A lot of estate planning deals with the distribution of your assets once you pass away. But you can also address your financial and healthcare decisions in the event that you become incapacitated. By granting someone power of attorney and creating a healthcare directive, you can name someone you trust to make those decisions on your behalf if and when the time comes. Otherwise, your family might end up fighting over key decisions, and the choices that are ultimately made may not align with what you want.
- The possibility of divorce: A lot of estate plans leave assets to a spouse. But what happens if you and your spouse divorce? If you don’t place contingencies in your estate plan, then your now ex-spouse could end up inheriting your estate. That might lead to disastrous consequences for the rest of your family.
- Digital asset protection: Your digital footprint is probably larger than you think. Your social media accounts, photo banks, and email accounts all have value, even if noneconomic in nature. You’ll want to make sure your family can access these digital assets so that they can care for them accordingly.
- Modifications: You should revisit your estate plan from time-to-time to ensure that it still meets your needs. The purchase of a large asset, births, divorces, deaths, and changed family dynamics should spur you to take another look at your estate planning documentation.
- A letter of instruction: While this document isn’t legally binding, it can provide finality and guidance to your family. With this document, you can justify why you’ve left assets to certain loved ones and specify the location of your estate plan documentation and your assets. You can also spell out how you want your funeral to play out.
Create the thorough estate plan that you want and need
You need your estate plan to be as detailed as needed to meet your goals. This means that you’ll need to know your estate planning options and understand what an effective estate plan can do for you.
We know that can seem burdensome given how hectic your daily life is, but this is an important procedural step that you should take sooner rather than later.
After all, if you wait too long, then your assets and your health could hang in the balance, at risk of being jeopardized in ways that you otherwise want to avoid.