Financial concerns are a common worry for Maryland residents. Most people have had some sort of issue come up related to money -- or a lack thereof -- at some point in their lives. However, just as a person needs to secure their day-to-day finances, a person should also look towards the future. Specifically, it is important to recognize that no one lives forever. What will happen to your heirs financially when you pass on?
Many Maryland residents have contemplated this very question and have considered creating an estate plan to provide for the distribution of their assets after they pass away. However, there are some common estate planning mistakes that many make that could derail their plans.
First of all, some Maryland residents have gone through the effort of creating a solid, well-thought-out will. The will may address all of their assets and financial concerns and it may lay out how their assets will be passed on to their chosen heirs and beneficiaries. However, sometimes a will is missing a very crucial thing: a signature. Without a signature, even the most well-drafted will cannot be implemented. Since no one can predict when their health will take a turn for the worse or when they will pass away, it is important not to put off signing your will.
In addition, just because a person has properly executed a will doesn't mean he or she should put it in their safe deposit box until the day they die. Actually, it is important to review your will from time to time. Certain life events: marriages, divorces, births and deaths could affect whom a person wants to name as their heirs and beneficiaries. People should also make sure that they review their wills if they move to another state, so that it meets state law. In addition, tax laws are constantly in flux. Wills should be periodically reviewed in a manner that helps them avoid negative tax consequences.
In the end, it is important to both properly execute an estate plan, and then review that plan periodically. These two steps can help Maryland residents provide for their loved ones after they pass away and put their final financial affairs in order.