Estate plans are meant to help provide direction for when the creator passes away. It lets the loved ones who are left behind know who is getting what assets. In some cases, the estate plan will make the transfer of assets easier. There are some common mistakes that people make with their estate plans that can cause the plan to not be effective. Colorado residents should make sure they aren't making these mistakes.
One of the primary estate planning mistakes is failing to keep the plan up to date. Once this essential document is created, it can't just be stuck in a filing cabinet and forgotten about. It needs to be updated when anything major happens, such as a divorce, a child being born or a marriage.
Another issue that can arise is that some people are private about these matters and won't discuss their estate plans with anyone. This can be devastating for family members because they don't have the chance to ask questions about things in the plan that aren't clear. Instead, it is a better idea for a person to discuss the plan's contents with anyone who is in it so that they are prepared for what is to come.
Sometimes estate plan creators don't discuss important end-of-life plans with their loved ones. This includes the creation of a living will, advance directives or power of attorney for health care designations. This could mean that the involved parties don't know what responsibilities they will have when the time comes.
There is also the issue of failing to ensure that the people named in the estate plan will be able to handle the responsibility they are being given. All too often, heirs spend an inheritance unwisely because they don't have any restraint or idea how to handle the sudden influx of assets.