Here is the final segment of the top 10 common mistakes people make when they die.

Misunderstand Beneficiary Designations. Beneficiary designations are often used in planning but can have unintended consequences if misunderstood. Beneficiary designations override the instructions left in your will or trust. They also do not allow flexibility for unforeseen changes like a child who predeceases you, which can unintentionally disinherit grandchildren.

Failure to Plan for Disability. Another common mistake is failing to plan adequately for a mental disability. Not planning for a possible mental disability can create significant problems for those who will be responsible for taking care of you. Caring for a person with a disability is hard enough. Having to overcome the legal challenges caused by a lack of planning can be overwhelming and also increase the complexity of things following your death.

Fail to Discuss Matters with Their Family. Communication is critical to a successful transition upon your disability or death. Failing to openly share information and discuss your plans with your family puts everyone at a disadvantage. Studies have shown there is a 50% chance that you will need care before you die, so have the conversation with your family before it is too late. Sharing openly with your family may be the single largest component in producing a smooth transition upon your disability or death.

Don’t let your failed estate planning be the horror story everyone talks about when they get together for coffee. Take the steps necessary to avoid these common mistakes so that things will go smoothly when you die.

If you have questions about these issues, you are encouraged to gain more knowledge about available estate planning options, by visiting www.EstatePlansThatWork.com to sign up for a complimentary educational workshop.