Preparing for the future is no easy feat. In fact, it can sometimes be intimidating or even distressing to consider. However, it is important that Colorado residents and those elsewhere remember the importance of estate planning. Certainly, it can be difficult to consider one’s own demise, but putting off planning is a major mistake.
In fact, financial procrastination is a serious error when it comes to estate planning. The longer a person goes without planning, the higher the risk of suffering a serious illness or passing away without a solid plan in place. This type of situation could leave a person’s final wishes up to chance as well as put surviving loved ones in a difficult position.
Of course, even if individuals do have a will and other estate planning documents in place, it does not mean they are out of the woods in terms of making planning mistakes. Some of the following issues could be present in already-existing plans:
- Not creating a life insurance trust and causing the estate to face taxation
- Having a will and other documents that contain outdated information
- Naming children as joint owners of property, which puts that property at risk of claims from the children’s creditors
- Failing to update beneficiary designations for payable-on-death accounts, like retirement accounts and insurance policies
These issues may not seem like a big deal now, but any one of them could cause serious problems for the remaining estate. Loved ones may not receive something they expected, or an undesired person could end up with important assets if estate planning information is not updated. Fortunately, Colorado residents can create their plans to reflect their desired wishes and review and update those plans periodically to ensure that the information remains accurate.