An estate plan is crucial for senior citizens to prevent family conflicts over their assets after they pass away. Unfortunately, people often neglect estate planning despite its huge importance. This mindset could be due to their lack of knowledge about estate planning, or they find it futile because of the few insignificant assets they hold. But, regardless of their assets and circumstances, it is crucial to do estate planning.

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Here are some common mistakes to avoid when making an air-tight estate plan.

Will Should Be Unambiguous

The language in the Will should be clear and easy to understand. The testator should list assets in his possession and their respective beneficiaries after he is gone. This step will ensure clarity about the testator’s intention regarding the distribution of his property among his loved ones. Additionally, they shouldn’t keep their estate plan a secret, which can breed suspicion, confusion and distrust among the family members. The person should appoint an executor and inform them about the plan, including the attorney’s name and where the Will is stored.

Use a Will Instead of Gifts To Transfer Property

Senior citizens should avoid gifting self-occupied houses or rent-bearing property to their children during their lifetime. Transferring property ahead of time can get them in trouble later because children or the legal heirs may refuse to care for them when they become older. Instead, they can do so via a Will.

Choose a Nominee for Your Financial Accounts

Senior citizens shouldn’t neglect a nominee/nominees for their bank and other financial accounts. Failing to do so will create major trouble for the legal heirs in claiming the funds and assets, potentially delaying the process or creating legal complications. If minor children are involved, a guardian can be the caretaker of a property until they reach legal age. Additionally, the Will ensures your assets are passed down to the rightful heirs.

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Review Estate Plan Periodically

It is vital to regularly review your estate plan so you can update it based on evolving family situations, such as birth, death, marriage, etc., or a change in the citizenship status of family members. This step will ensure that every rightful heir is included.

Name a Power of Attorney

One should choose a power of attorney (POA) for any property, bank, or tax-related transaction and pay for legal services, investments, etc. Any individual whom you can trust can be a POA to make important decisions on your behalf in situations like incapacitation.

Create a Living Will

A living Will can allow them to make medical decisions when they cannot communicate due to old age or illness. It should be an easy-to-understand document mentioning your treatment preferences, finances, etc. It will help the executor to make the right decisions on your behalf.