Despite several estate planning options out there today, most people still can’t get over some estate myths as such they become victims of bad estate plans. Estate plan provides ways by which you can decide what happens to your financial assets, your estate, family and also your personal healthcare. With a single estate documents, you can ensure that your estate go to whomever you want, select a desired personnel to handle your financial and medical decisions for you when you are unable to do so. The rush and impatience of most people who create estate plan proves to be one of the greatest undoing in bad estate planning. While it all seem fine and easy, some significant estate planning myths has lead people to many financial and asset loss. Even when there’s no loss, probate issues takes the center stage. The issue oftentimes isn’t the estate document but how it was created.
Here are major estate planning myths:
- I can make estate plan myself whenever I like.
Here is one of the most common myth on estate planning. Certain people feel their estate doesn’t require making estate pan because they feel it’s not large enough. Others in this category believes that they can with little effort create estate document themselves when the feel like. Although, estate planning is not entirely difficult, certain area require professional specialty. Besides, it’s dangerous and unreasonable to neglect making future plans for the little you have. As you would not like to lose your financial assets you should be prompt to creating estate documents.
Many estate plan under long and exhausting probate process before they are implemented; some people experience very significant financial and assets losses because of making very delicate estate plans without involving a professional. Simple but yet costly mistakes disrupts the implementation of estate plan document. One signatory or statement in the document could mean entirely different thing, as such it ends in probate to determine what and what is not.
Rather than make a fuss of your estate planning, contact an estate planning attorney close to you to make proper plans.
- A last Will is all that is needed for an estate plan.
A very popular myth is that last will alone cater for all estate planning options. This misconception has led lot of people to missing out on other estate planning options. A will just help you express how you wish to distribute your estate when you are no longer alive and also to name a guardian for your minor ward. With more advance estate plan options like living trust, financial power of attorney, and healthcare proxy you can protect you financial assets, transfer assets to desired beneficiaries whether you are alive or not alive.
Advance estate planning options removes the possibility of probate, excessive taxes and court supervised guardianship. You should contact an estate planning attorney to help you create these plans.
- Estate planning is only meant to distribute asset properties
This is another common myth. Estate planning covers extensively most areas of one’s life. Estate planning options include protecting life as well as property. While a properly planned estate would ensure that your assets are distributed the way you want them without long probate processes, you could still make plans for what happen to your health, your personal assets while you are alive. For instance a medical power of attorney would help you assign someone to make healthcare/medical decisions for you when you are unable to do so. A carefully planned estate would ensure your family, children and assets passed to them is safe even while you are no longer alive.
- I’m too young to create estate plan.
As long as you are 18 and above, you need to start setting your priorities right and one of these including making estate plans. You don’t need to wait till you become a baby boomer to start making plans. You should start making plans on your assets as soon as possible.
- My estate plans does not require revision or update
As state laws continually change, some regulations of estate plan also change. It would be unpleasant to have your estate documents thrown away because it doesn’t reflect the changes or upgrades on estate planning rules. Therefore, it is important that every now and then, you meet up with your estate lawyer to make follow-ups and needed upgrade to your estate plan documents.
- I’m married, my spouse will get all my assets without an estate plan
There are instances where either of the spouse dies without an existing estate plan document. This situation makes it hard to property distribute the decedent estate, especially if there is a long list of children and other relatives. It is important for couples to make estate plan and decide into detail who the beneficiaries.
