Estate planning is one of the most crucial processes for all adults. However, it’s associated with a lot of misinformation that, in most cases, leads to costly mistakes. You need to learn more about this process, including its myths.
Below are two common estate planning myths:
It’s only for the wealthy
A significant percentage of people put off estate planning because they have fewer assets. They believe a will matters when one is “wealthy” or has “enough” assets. However, estate planning is not only for the wealthy; anyone can benefit from drafting an estate plan.
Besides covering finances, an estate plan allows you to plan for your kid’s future if anything happens to you – you get to choose someone who will take care of them if you become incapacitated or die. Further, you can prepare for incapacitation using an estate plan. You will list health care decisions to be observed and choose someone to make other medical decisions on your behalf.
Lastly, regardless of the amount of assets you currently have, you worked hard to acquire them. Thus, you deserve to distribute them among your loved ones according to your criteria.
It’s only for older adults
Some younger adults believe estate planning is for older people. However, you never know what might happen tomorrow. You don’t need to be older or have a family to plan for your future. And as mentioned before, estate planning offers solutions to all adults.
Thus, consider drafting your estate plan now and keep updating it as you get older.
Myths surround almost all aspects of estate planning, including who needs an estate plan, when to draft one, how to avoid federal estate taxes and so on. Seek legal guidance to make informed decisions.