There are many misconceptions about estate planning. Many people believe they do not need a will or trust because they do not have enough money or a large family. Learning more about the most common estate planning myths will help you to understand how a plan can work the way you want it to work when it's needed. Below are three of the most common myths surrounding Estate Planning.
I Don’t Have Enough Assets or Family Issues to Need an Estate Plan or a Trust
Trusts are not just for multi-millionaires anymore. They can provide flexibility and protection for your loved ones where a last will and testament might fall short. For example, if you have minor children or minor grandchildren, a trust can allow you to delay an inheritance or place specific conditions on it. A will means everything is distributed right away once they turn 18.
A trust provides convenience, privacy, and allows you to avoid the probate process. Probate fees can be up to 5% of the value of your estate. Having a fully funded trust instead of a will can help you avoid these extra costs and .
Regardless of your net worth, a trust may be the right estate plan for you if you have specific wishes or want to protect your assets.
I Can Do This Myself
We live in a DIY society. You have spent your entire life building your estate and your legacy. Why take a risk with something so important? Your life savings is worth it!
With complex estate planning laws and strategies changing all the time, it is best to trust the specialists and knowledgeable professionals.
Everyone should seek professional legal advice when planning their estate! Low-quality, form based documents from the internet or a program may not protect your family and provide no legal advice. How will you know if your plan was done correctly or if it will work? You won't know until it is too late!
I Don’t Have an Estate Plan Right Now, But I Can Get Around to it Later
Everyone knows they need an estate plan. What will happen if you pass away today? Multiple studies have shown that over 60% of American adults have nothing! That can lead to big problems down the road for your loved ones that you leave behind.
If you die without a plan in place, the state decide what happens to your assets and your family. Estate planning can also prevent family disagreements. The fighting over what people "thought mom and dad wanted" will not be an issue with proper estate planning.
Get your planning done now. Give yourself that peace of mind knowing that your family is protected. Estate planning is a selfless act. Why wait to protect your spouse, children, grandchildren, and other loved ones?