Many people avoid estate planning because they believe a variety of myths and misconceptions. However, estate planning is an important step for many people, and it is important to understand the truth when approaching the process. What should you know?
Myth 1: Estate planning is only for the wealthy.
Many people think that only rich people need estate planning. This is not true. Estate planning is about more than just money; it involves making important decisions about what happens if you pass away or cannot make decisions for yourself. It helps ensure that your healthcare wishes are followed, your children have guardians, and your assets go to the people you choose. Everyone should have an estate plan to have control over these important choices.
Myth 2: You are too young to create an estate plan.
Some think estate planning is only for older people. However, life is unpredictable, and being prepared is smart. Young people, especially those with assets or families, may need basic estate planning documents to protect their family, their finances and their health. For example, once young people reach the age of 18, having a healthcare power of attorney ensures that someone they trust can make choices for them if they become too ill or injured to make those decisions on their own.
Myth 3: You only need a will.
A will is important, but it’s often not enough by itself. A will takes effect after you die and does not help if you become incapacitated. A complete estate plan can include a power of attorney, healthcare directives or a trust. These tools help manage and use your assets during your lifetime and after.
Myth 4: Estate planning is a one-time task.
Some people think once they make an estate plan, they never need to look at it again. This is not true. Life changes like getting married, having a child, or changing financially mean you should update your estate plan. You should review your plan every few years or after any big life event to make sure it still matches your wishes.
Myth 5: Do-it-yourself planning is just as good as working with an attorney.
With so many digital resources, it might seem easy to just download a form and fill it out. While online templates can be a good starting point, these DIY options can come with hidden risks or fail to address your specific needs. Talking to an estate planning attorney can make sure your estate plan follows state laws and meets your personal wishes. They can also help you explore tools that you may not have otherwise considered.
Estate planning is crucial and should be misunderstood. By clearing up these myths, you can not only understand the importance of estate planning but also take the necessary steps to protect your wishes.