Do you feel overwhelmed when considering your options for estate planning? You’re not alone. Many people don’t understand how estate plans work, which can cause a lot of confusion and misunderstanding about this process. Today we are breaking down the most common myths about estate planning to help clear up some of this confusion.
Myth 1: “I’m Not Old Enough” Don’t assume that estate planning is solely reserved for the elderly. The necessity for a will or estate plan can arise unexpectedly at any age, so it’s wise to prepare early to ensure your affairs are in order should the unexpected occur.
Myth 2: “I’m Not Rich Enough” Estate planning is not the exclusive domain of the wealthy. It applies to individuals of all income levels. Regardless of the size of your estate, a well-structured plan ensures that your affairs are managed should you become incapacitated or pass away unexpectedly.
Myth 3: “I Don’t Need a Lawyer” While online DIY estate planning options exist, they lack the personalized expertise provided by a lawyer. It’s advisable to, at the very least, consult with a lawyer to ensure that your estate plan covers all necessary aspects comprehensively.
Myth 4: “Having a Will Avoids Probate” While a will can be a component of your estate plan, it doesn’t guarantee avoidance of probate. Proper paperwork and documentation are essential to simplify this process. To completely bypass probate, incorporating a trust into your plan is necessary.
Myth 5: “Everything Goes to the State Without an Estate Plan” Failure to establish an estate plan doesn’t entail that everything automatically reverts to the state. Instead, it means that the state will determine the distribution of your inheritance, with some funds allocated for fees.
Myth 6: “My Spouse Will Take Care of Everything” Even if your spouse can act as your power of attorney, it’s crucial to have a will and estate plan in place. Unforeseen circumstances could affect both of you simultaneously, emphasizing the importance of proper planning.
Myth 7: “A Trust Can Avoid Estate Tax” Complete avoidance of estate taxes is impossible, but certain types of trusts can be integrated into your estate plan to help mitigate, and potentially eliminate, liability for estate taxes.
At Legacy Counsel, we offer guidance and support throughout the estate planning process. Protect your family from unnecessary conflicts and ensure a smooth transition of your legacy. Contact us today to schedule your Legacy Session and initiate your estate planning journey.
