5 Common Myths About Estate Planning

Estate planning gives you peace of mind knowing that important end-of-life decisions about your medical care and distribution of assets will be made according to your wishes. It makes sense to have estate planning documents in place, yet only 58% of baby boomers have taken the steps needed to create an estate plan.

An unwillingness to confront one's mortality may be behind the reason people avoid discussions about death and dying, or it may be a lack of understanding about estate planning. If you fall into the group of adults who have not committed to putting your estate in order, it may be helpful to take a look at and reveal the truth about five of the most common estate planning myths.

Common Myth #1: I'm not wealthy, so I don't need an estate plan

The need for an estate plan has nothing to do with what or how much you own. People see the word "estate" and immediately think of luxurious mansions and fancy cars, but it actually refers to the real and personal property you own regardless of their value.

Estate planning refers to the set of documents that specify your wishes about financial matters and medical care and designate the person or persons to carry them out in the event you become incapacitated or die. Some of the typical documents prepared by an estate planning attorney may include a will to distribute your assets after death, a trust to manage your finances during your life and distribute assets after death, and a power of attorney designating someone to handle financial transactions on your behalf.

An estate plan includes documents to make your wishes known regarding health care and end-of life decisions. Medical powers of attorney and health care proxies designate someone to make decisions about your medical care when you are physically or mentally incapable of doing so. A living will contains your end-of-life preferences to guide your loved ones and medical professionals.

Common Myth #2: I'm not old enough to need an estate plan

Regardless of your age or the condition of your health, you never know what life may have in store. Documenting your wishes regarding your health care and finances and putting a plan in place to ensure they are carried out no matter what life throws at you makes sense at any age.

Common Myth #3: My spouse and I have joint ownership of our assets, so we don't need estate planning

Depending upon the laws in the state in which you and your spouse reside, assets you own jointly may pass to the survivor when one spouse dies, but that does not mean you do not need an estate plan. An estate plan can provide for distribution of assets in the event both spouses die at the same time, as may occur in a car accident or other common disaster.

Common Myth #4: Estate plans are inflexible and cannot be changed

Wills, trusts, powers of attorney, and the other documents created by your estate planning attorney may be changed to accommodate new events that occur in your life. It is always a good idea to periodically review your estate plan and make whatever changes are needed to accommodate life events that may occur.

Common Myth #5: Estate planning is something I can always do later

Planning an estate is something to do before a need for it arises. If a sudden illness or catastrophic accident makes it impossible for you to communicate with your doctors, a medical power of attorney allowing someone you trust to speak on your behalf would ensure that your preferences are honored. However, it had to be prepared and signed before you became incapacitated.

The best time to put your estate in order is right now. Take a step closer to peace of mind by scheduling a consultation with an estate planning attorney today.

Author’s Bio - Steve Howards

Steve has been writing legal-centric articles for several years now. He started working with the personal injury attorney law firm Herrig & Vogt in 2019 as the Content Marketing Manager, which has allowed him to expand on his writing in personal injury, family law, and much more. Steve strives to offer the public advice on various laws covering a variety of practices.




Comments

Be the first to commment on this article.

Post a Comment