Estate planning is more important than many people realize. There are many misconceptions about estate planning that can leave people confused and ill-prepared.
When you understand the facts about estate planning, you can see the benefits that will have for your finances and your family.
Myth 1: estate planning is only for the wealthy
One of the most common misconceptions about estate planning is that you only need to worry about it if you are wealthy. This has led many people to dismiss the importance of an estate plan, which is why two-thirds of U.S. adults have no will at all. The truth is that estate planning is important for everyone because, without an estate plan, your family must go through the intestate probate process, which is lengthy and expensive.
Myth 2: a will is all you need
Your will is a fundamental part of your estate plan, but it is not always enough by itself. You may need to also consider a trust to manage your assets, power of attorney for decision-making and healthcare directives. In some cases, you need guardianship declarations for your minor children, established care funds for those children and other legal details, too. Save your family the stress and uncertainty of addressing these elements by creating a comprehensive estate plan.
Myth 3: estate planning is a one-time deal
You might have heard that creating an estate plan is a one-time deal. This is not the case. Life changes quickly and your estate plan should adapt accordingly. This may mean changing it to account for marriage, divorce or birth. You may need to adjust it if your assets change. Review your estate plan every year to ensure that the information is current.
Dispelling these common myths helps to clarify the facts behind estate planning. Protect your assets and your loved ones with a comprehensive estate plan today.