People in Arizona plan for a good retirement and a good life. What many individuals fail to do, however, is plan for a good end to their lives. End-of-life planning is all about getting your affairs in order to designate who will receive your assets and handle your responsibilities upon your death. An estate plan goes much further than a will, and it considers key factors, such as your children and the size of your property.
While certain matters, like end-of-life planning and death, may feel difficult to fathom now, the risk of not dealing with them because of discomfort with the subject simply isn’t worth it. Here are a few estate planning mistakes many people make and what you can do to avoid them.
Among the biggest estate planning mistakes is failing to update your plans over time. When it comes to end-of-life planning, there’s no “set it and forget it” approach. Each time your personal goals shift, your family expands or public policy changes occur, take the time to update your plan. If, for example, you move to a new state, your plan may need to be modified based on the laws of that state.
Many people make the mistake of failing to plan for long-term care or disability. However, no plan is complete without factoring in these two possibilities. While you’re still able to work, make sure you have the correct amount of disability insurance. After you’ve retired, your focus can shift to long-term care planning.
Some people fail to maintain the proper amount of liquidity in their estate planning too. One of the most common ways to create estate liquidity to help surviving relatives pay off debts and benefit from your hard work is through a life insurance policy.
Although end-of-life planning may seem complicated, you don’t have to go through the process on your own. You may benefit from scheduling an appointment with an experienced estate planning attorney.