There is no denying the fact that there is a lot of gray areas associated with estate planning. Even if you have a good working knowledge of estate planning, your legal rights and federal and state laws, you could still make a mistake that costs you and/or your family.
Here are a handful of estate planning myths that many people mistake for facts:
- Only rich people need an estate plan: Nothing could be further from the truth, as estate planning is for people of all income levels. You create an estate plan for many reasons, such as ensuring that your assets end up in the right hands and protecting yourself in the event of incapacity.
- Only old people need an estate plan: Even if you’re young and healthy today, this could change in the future. It’s important to create an estate plan early in life, and then make changes to it as necessary as you age.
- Your family will take care of everything when you pass: Even if you can trust your family to do the right thing, that doesn’t necessarily mean everything will go as planned. Without an estate plan, the legal system decides what happens to your assets and debts upon your death. Also, without an estate plan, you put a lot of pressure on your family when you pass away.
It’s important to separate fact from fiction when creating an estate plan. Doing so will allow you to make informed decisions that give you and your family peace of mind, both now and for many years to come.