October is National Estate Planning Awareness Month. It’s a time to recognize the importance of creating a will or trust. This is a practice that every adult should observe. It also includes reviewing any estate planning initiatives and making updates accordingly.

Young professionals and workers often overlook this crucial aspect of financial planning. Understandably, there are many common misconceptions that younger generations tend to believe that may cause them to delay estate planning, such as:

• Confusion regarding where to start.
• Perceptions of age and the illusion of limitless time. 
• Feelings that one doesn’t have enough assets to warrant it.
  

Every adult, no matter their age or stage of their career, can benefit from estate planning. It is a sound practice that not only secures one’s future but also that of their loved ones, friends, and family. 

When drafting a will or trust, it's essential to avoid common pitfalls. Here are some of the most common mistakes people make, and what you can do to prevent them.

Mistake #1: Thinking Trusts and Wills Are for the Wealthy or Older Adults

Trust & Will reports that one of the leading reasons people put off estate planning is having the belief that one doesn’t have enough assets to warrant it. This barrier can stem from the notion that only the wealthy or people nearing the end of their natural lifespans need to worry about such things.

However, this couldn’t be further from the truth.

Take a moment to take an inventory of the things you own. These can be many things, including:

• Physical possessions
• Cars and other vehicles
• Savings accounts
• Retirement plan
• Investment portfolio
  

After that, think of the people and things that are important to you:

• Your children
• Your spouse
• Your family
• Your pets
  

If something were to happen to you, would you know who would get, or take care of, what matters most to you? While this may be an uncomfortable thought to consider so early in your career, it's helpful to have plans in case the unthinkable happens. 

While your finances and assets may seem to be in a building stage now, they still have value. Additionally, if you are starting a family, it is worthwhile to have a plan so that your wishes are honored. Having a trust or will can make a significant difference not only for your future but also for those who are closest to you in life.

Get started on estate planning by focusing on the basics. Consider establishing a will, healthcare proxy, and power of attorney. You can further build upon or revise these items as your career develops and your needs change.

Mistake #2: Not Naming or Updating Beneficiaries on Important Accounts

A will is a crucial tool in planning your estate. It’s a legally enforceable document that provides directions to loved ones, secures your assets, and solidifies your legacy.

However, this is only one aspect of estate planning. Another aspect is ensuring that your financial accounts are directed to the correct places.

Check out this short list of financial accounts and products:

• Checking and savings accounts
• 401(k) and retirement accounts
• Investment and brokerage accounts
• Health Spending Accounts (HSAs)
• Life insurance policies and annuities
  

When you open these kinds of accounts, you will be asked to designate a beneficiary. A beneficiary is a person that an account holder designates who will take ownership of the account in the event of the account holder’s death. 

Beneficiary designations supersede any directions outlined in a will. It’s an aspect of estate law that is often overlooked until it’s too late.

Life comes with many twists and turns. Major life events, like a marriage, divorce, or job change, can throw plans in disarray if you forget to update your beneficiaries.

Get into the habit of reviewing your accounts at least once a year to update your beneficiaries as needed. The last thing you want is for your will to specify one thing about your financial accounts, only for those accounts to have mismatched directions. 

Mistake #3: Overlooking Digital Assets and Online Accounts

In today’s always-connected world, there is another aspect of your life that may need to be added to your estate plan: your digital footprint.

As any cybersecurity expert will tell you, data is just as valuable as money. Going beyond access to financial accounts, think of the digital items that belong to you:

• Email and direct messages
• Social media presence
• Digital photos, videos, and documents
• Anything in cloud storage
  

These items all contain valuable or sensitive information. Some may have financial value, while others hold emotional or sentimental weight.

An estate plan that does not take into account a digital footprint may present technical or legal problems that may burden your family and loved ones. Worse, they may be susceptible to hacking attempts or data breaches if not properly secured.

When reviewing your will, consider adding provisions regarding your digital legacy. This might include designating a trusted, tech-savvy loved one to manage your online accounts, social media, and data stored on cloud services or electronic devices.

Major online service providers may have procedures in place to manage accounts of deceased users. It will be worthwhile to verify if any online services you use have these measures. For example, Google has the Inactive Account Manager, while Facebook allows you to designate a Legacy Contact. Refer to a specific online service’s help center or contact them to learn if they have similar features.

The concept of a digital footprint is relatively new in estate planning, and regulations are subject to change. Therefore, consult with a qualified legal professional before setting up digital footprint directives in your will.

Estate planning empowers you to secure a future for your loved ones. Take a proactive approach to updating your will. The steps you take now will build a legacy that your family will remember.

Build your legacy and write a will today. First Florida has partnered with Love My Credit Union Rewards and Trust & Will to bring you an easy, affordable, and secure way to create an estate plan. Trust & Will, an online estate planning platform, has helped over half a million families secure their legacies. Members can receive a discount on any estate plan with Trust & Will.  Click here to learn more about Trust & Will.