5 Common Estate Planning Myths Debunked

Common myths about estate planning confuse and mislead people about how it works and what its benefits are. These myths make many people believe that estate planning is not for them. Sadly, this kind of thinking may leave their loved ones with financial and legal obstacles when it’s time to distribute their assets after they're gone. 

Read on as this blog will debunk five common estate planning myths. 

1. Only Older Adults Needs an Estate Plan

Many individuals in their 30s and 40s feel they're too young to need an estate plan. Instead, they claim they'll consider estate planning once they retire. Sadly, life is uncertain, and you never know when you'll die. 

It's wise to invest in estate planning from a young age to manage life’s uncertainties. An estate plan will highlight how you wish your assets to be managed and distributed after death. In addition, the estate plan will protect your young kids and mitigate any family disagreements. 

Also, estate planning at a young age will help you track your assets and build wealth. 

2. Estate Planning Is Only for the Wealthy

It's logical to believe the misconception that only rich people need estate plans. You may think that only the wealthy can afford the legal fees of creating an estate plan. However, everyone needs a plan on how their assets will be distributed and managed when they're gone. 

Even if you're not rich, you likely still have assets such as your home, retirement savings, life insurance, etc. You need an estate plan to give instructions on how these assets will be distributed once you're gone. Leverage your estate plan to create trusts to distribute your assets without any interference from the court system. 

Also, it's a myth that only the rich can afford to hire estate planning attorneys. Many lawyers will charge a reasonable fee to create your estate plan. 

3. Married People Don't Need Estate Plans

Many married people believe they don't need estate plans as it's unlikely they'll die at the same time. They assume that any jointly held assets will automatically pass to the surviving partner upon the first partner's death. 

But what if there are other dependents or the surviving spouse remarries? And what if both of you die at the same time? The only way to address these concerns is to develop an estate plan. 

4. Estate Planning Is Only About Money

Many people perceive estate planning negatively because they assume it's all about money. They assume estate planning is only for people who only want to protect their wealth, yet this isn't the case. Estate planning is about more than money; its primary focus is on your loved ones and protecting them when you're gone.

A well-structured estate plan will help your family avoid a lengthy probate process. In addition, it'll simplify asset distributions upon your demise. Estate planning is more than money; it's about love and family. 

5. Estate Planning Is Only About What Happens When You Die

Estate planning is more than about what happens after you're gone. A comprehensive estate plan will appoint people to act on your behalf under specified circumstances while you're still alive. The idea is to leverage power of attorney to protect your assets and welfare. 

Estate planning is beneficial to everyone, and it's not only for the rich or older adults. An estate plan is an effective tool that helps protect your dependents and share your wishes on how your assets should be managed when you’re no longer around.

Contact us today, and our attorneys will help you create a comprehensive estate plan that fits your needs.