Virtually all people should have an estate plan in place to ensure their family receives their assets according to their wishes. Estate plans can also provide other forms of protection, particularly when it comes to the care of children.
Along with creating an estate plan, you must also make sure your plan avoids common mistakes and errors. Here are a few steps to take for greater peace of mind.
Think about long-term healthcare
Long-term care in a nursing facility is often exorbitantly expensive. Home health aides are also expensive, which leaves lots of people without options as they grow older. Establishing care for long-term health needs now ensures you can enter your golden years with confidence. For instance, purchasing disability insurance offers a safety net against expensive medical treatments should the need for them arise later in life.
Update your plan over time
Creating an estate plan is not the end of the process. You must also review your plan over time and make changes as needed. For example, a new marriage or divorce signals that a review should occur to either remove or include heirs. You should also review your plan after the birth or adoption of a new child. Significant financial changes, such as an influx of money, also call for a thorough review.
Name a guardian for your minor children
In the event the unthinkable happens, your minor children must have a suitable guardian to step in. While the court will name a guardian if one is not listed within your will, most parents prefer to do so on their own. Including a guardian ensures your children will receive the proper care and protection for their lives, even if you are not there to provide it.