5 Common Myths About Estate Planning
Not many people think about estate planning; that is the reason why over 50% of the population do not even have a will.
Yes, it is not easy to make arrangements for what happens after your death, but it is vital for the security of your loved ones. Thinking about the possibility of death is frightening, but it is a crucial part of life. It is a critical step that one needs to take for the sake of their loved ones and those closest to them.
An estate plan is an arrangement which ensures that your family stays away from the mess of a government planned probate proceeding.
If you are thinking about an estate plan, you need to know that there are several myths and misconceptions that surround estate planning. We’ve created a list of some of the most common myths and misconceptions so that you can stay well informed.
MYTH #1: ESTATE PLANNING IS ONLY FOR WEALTHY INDIVIDUALS
The most widely spread misconception about estate planning is that it is only for wealthy individuals. You might think that you do not have any valuable assets or properties for which you will need an estate plan, but this is a misconception.
Estate planning is a must for everyone, regardless of whether you are wealthy or not. An estate plan not only governs your monetary assets but even deals with healthcare arrangements and guardianship of your children. It outlines your wishes about your heirs, and you can also leave gifts for your loved ones once they fulfill the legal condition you have set.
MYTH #2: ESTATE PLANNING IS FOR THE ELDERLY
People often believe that they are too young to start thinking about estate planning, and that it is only for the elderly. However, because life is unpredictable, having an estate plan even when you are young brings a lot of valuable peace of mind.
Therefore, the sooner the better when it comes to starting your estate plan. You do not have to be an aged individual to think about organizing whatever assets you own.
MYTH #3: EVERYTHING WILL PASS ON TO THE SPOUSE
Marriage makes estate planning easy and less stressful, but it can also complicate matters. If you and your spouse die together, there will be no provisions about what will happen to your assets. Moreover, if your spouse remarries after you die, you need to make arrangements for that as well.
As a parent, you might want to give certain assets to your children. When you do not have an estate plan, your assets might end up with the wrong person.
MYTH #4: A WILL AVOIDS PROBATE COURT
Another misconception about estate planning is that a Will ensures a smooth distribution of assets without court intervention. However, a Will alone will not avoid probate court if you die owning real estate or $100,000 in assets. If that is the case, then your Will must be filed in probate court in order for your real estate and assets to be transferred or sold.
MYTH #5: REVISITING AN ESTATE PLAN IS NOT IMPORTANT
A majority of the people think once they have created a Will or Trust, they do not have to review it and update it. However that can put your family in huge trouble. Sometimes laws change that affect your estate plan or the people if you’ve named in your estate plan have died, have become incapacitated, or have fallen out of favor with you. Not revising the estate plan and not updating it might make your assets end up in the wrong hands.
You must steer clear of these incorrect details about estate planning. If you really want to make things easy and stress-free for your loved ones, make sure you do not fall victim to these myths and misconceptions!