It’s often important for people to plan their estate to ensure their assets are properly distributed to beneficiaries. However, many people don’t plan their estate because of common misconceptions.
To circumvent problems for your family and loved ones, it may be in your best interest to learn how you may have misunderstood estate planning. Here’s what you should know:
Myth #1: You’re too young
Truth: Many people think estate planning is for older people. However, that’s far from true. Accidents can happen at any time, and you may need to prepare your family for the unexpected. Not only that, but you may need a power of attorney to make decisions on your behalf if you’re incapacitated in any way while you’re still young.
Myth #2: You need to be rich
Truth: It’s common for people with lots of assets and finances to make an estate plan. However, having a small estate shouldn’t stop you from making an estate plan. An estate plan can be made to ensure your last wishes are met, such as funeral plans and ensuring your family doesn’t fight about what assets you leave behind, no matter how little.
Myth #3: It’s better to write your own will
Truth: You can write your own will and many people do to save money. However, a handwritten will can lead to validation issues during probate. If your will isn’t legally sound, then the state may be left to distribute your assets.
Myth #4: The state knows how to distribute your assets
Truth: If you don’t have a will, because it was lost or never written, or your will was invalid, the state will step in to distribute your assets, as stated above. However, the state doesn’t know what your last wishes were and may give your assets to people you didn’t intend to benefit. In other words, the state doesn’t know who you plan to inherit without an estate plan.
Myth #5: You don’t need legal help
Truth: An estate plan is a complicated series of decisions that should be written and verified with legal expertise. You may need to reach out for legal help to ensure your estate plan is in order.