Estate planning is a critical part of financial planning. Estate planning protects your assets, protects your wishes, helps avoid probate, and minimizes taxes and expenses upon your death. Yet, many people don't have an estate plan, while others have out-of-date plans. And some people make common mistakes that can negate the benefits of estate planning. Discover how to create a successful estate plan.

Unfortunately, 67% of American adults do not have a will or living trust. Most of these individuals argue that estate plans are only for the extremely wealthy, while others think they are too young to start estate planning.

However, estate plans are necessary for everyone regardless of how much wealth they own. Also, age doesn't matter as long as you have attained the legal age of adulthood and have assets to your name.

Failure to plan puts your loved ones in uncomfortable situations when you are gone. If something happens to you, your family will need to go through the court system to determine what happens to your assets. The probate process is expensive, time-consuming, and increases the chances of disagreements among family members.

You may undergo major live events that necessitate an estate plan update. For instance, you may get married, have children, buy a house, or change jobs.

Perhaps you had named your parents as the beneficiaries of your retirement accounts when you were single. But now that you're married with children, you may want to name your spouse and children as the beneficiaries. In the same way, you may have named your ex-spouse as your estates beneficiary. If you don't update your plan, your assets will go to people you don’t intend.

Your digital assets may include your social media accounts, email accounts, blog content, or domain names. Some people don't know this, but digital assets are as valuable as tangible assets.

If you don't include digital assets in your plan, they could be lost or stolen, so your family may be unable to access them.

To protect your digital assets, include them in your estate plan. Add instructions on how you want them to be managed and who should have access to them.

You should plan for the unforeseen, such as illness or injury, that leaves you incapable of making critical life decisions about yourself. An incapacity plan allows you to designate someone to manage your finances and make medical decisions if you become incapacitated.

Without an incapacity plan, a court may need to appoint a guardian or conservator to make these decisions for you. You may create an incapacity plan as part of a will or living trust or do it as a stand-alone document.

Estate planning is a complex process. The law features numerous laws and regulations you must navigate to avoid errors that could cost you and your loved ones in the long run. An estate planning attorney comes in handy to help you navigate the process and create a plan that meets your unique needs.

The attorney knows the ins and outs of the estate planning law. The professional will inform you of the necessary documents and everything you need for a successful estate plan. Most importantly, since the attorney is not biased, they can advise you when selecting trustees, heirs, and beneficiaries.

Don’t attempt to create an estate plan without a reliable lawyer on your side, as it could cost you dearly in the long run.

Now that you understand what to do while estate planning, you are better positioned to make helpful decisions for yourself and your loved ones. We are highly experienced and certified estate planning attorneys. Contact us at Kisner Law Firm for more inquiries to help you avoid estate planning pitfalls.