Make Sure You Understand Your Estate Plan

Make Sure You Understand Your Estate Plan

Creating an estate plan is an essential part of providing for your family after you pass away. Some aspects of Michigan estate planning can be complicated, which is why some people hire an estate planner for assistance. However, it is possible to be too passive in your estate planning, so much so that by the time you are ready to sign the estate documents, you might not understand what you are being presented with.

 Forbes explains that people do not need to be experts in every aspect of their estate plan. They do not need to understand all the legalities involved or the reasons that particular language is used in the documents. Still, a person should know the fundamentals, such as how the plan is going to work and the steps you need to take to carry out the plan, as well as what your estate plan will provide for your beneficiaries.

Unfortunately, not everyone will take the time to at least be familiar with the basics. They instead rely on the expertise of the estate planner for assurance. However, the Forbes article points out that not understanding your estate plan can lead to a failure of the plan to be completely implemented. Since estate plans can break down in a number of ways after estate paperwork is signed, a lack of understanding can derail your plans at a future date.

 To gain a better understanding of their estate plans, people that hire an estate planner can insist that the planner guide them through how the plan works and all the estate documents. Taking notes is also a wise move. It is easy to forget details as time moves on. Going back to your notes can help you understand important decisions you had made years before, as well as your reasons for making them.

As Marketwatch points out, your estate plan is a moving target. You need to be prepared to make changes to your estate plan throughout your life to account for asset acquisitions, loss of relatives, gaining of children and grandchildren, and other important life events. Do not assume estate planning is a one and done affair. Keep this in mind when your initial estate plans are made so that you can be ready to make changes down the road.