When California residents think about getting started on their estate plans, they may believe that the whole process is a bit daunting because of all of the potential options. However, despite the fact that each individual and family in California has different family dynamics and, as a result, different estate planning options, the fact is that an estate plan doesn’t need to be overly complex. In fact, one of the most important parts of estate planning is probably to avoid mistakes, not worrying about varying options.
What are those mistakes?
A recent news article mentioned that one common mistake is to fail to designate beneficiaries on accounts such as retirement accounts and investment accounts. Looking at an estate as a whole – not just assets that might go through probate – can help individuals and families in California to account for how and when assets will be passed on.
Another common mistake that the recent news article mentioned is the failure to account for tax implications in an estate plan. For some people, the fact is that their primary goal in estate planning is to reduce tax implications as much as possible. But, for others, tax implications may not be at the forefront in the planning process. For the sake of heirs and beneficiaries, it probably needs to be.
Solid estate planning is crucial
No two estate plans are the same. Yes, there are many different options for California residents to consider during the estate planning process, but having an estate plan in place is crucial and this is a task that should not be overlooked or delayed. A solid estate plan can help put your mind at ease, and help your family to know that legal complications with your estate might not be an issue.