The process of creating an estate plan may seem like a cut and dried kind of endeavor. However, there are aspects of an estate plan that people commonly get wrong or disregard altogether. It is important for Michigan residents to understand the mistakes of others to ensure they are on the path to comprehensive estate planning for themselves and their family.
Perhaps the biggest mistake or misconception is the belief that people just don’t need to create a will or start the process yet. It is reported that 64 percent of people don’t have a will at all. It is recommended that anyone over 18 should have a will just to make things easier on loved ones in the event of an accident. It doesn’t matter how much someone has financially — anyone with a bank account should have a will.
One new area of concern that may truly impact the younger generation is digital assets. Any estate plan should be clear about what is to become of accounts and documents. Having passwords and account numbers passed down can be a useful tool when dealing with online accounts. There may even be the need to consider the fate of social media accounts.
No estate plan is exactly like another. Every Michigan family has unique concerns and needs when it comes to designing an effective estate plan. It is important for individuals and families to discuss and plan how their estate plan should take shape and how to best go about implementing a plan that addresses all of those unique issues.
Source: forbes.com, “7 Common Estate-Planning Blunders Not To Make“, Sheryl Nance-Nash, Sept. 15, 2014