It is important to go forward with the benefit of accurate information when you are planning your estate. If you harbor misconceptions you may make errors of commission or omission that can negatively impact your family members.
With the above in mind let’s take a look at three of the most common estate planning misconceptions.
1.) I am too young to worry about estate planning.
This is a very commonly held notion, but in truth every self-supporting adult should have an estate plan in place. You never know what the future holds, and as we all know if we are being realistic people pass away at all ages every day.
Parents of young children have another layer of responsibility to consider, and for these people estate planning is absolutely essential.
2.) Trusts are only useful for rich people.
In truth, revocable living trusts can be useful for people who would not consider themselves to be wealthy. These trusts enable efficient asset transfers to the beneficiaries upon the death of the grantor in accordance with the trust terms.
If you use a last will rather than a trust the estate must be probated. The probate process is time-consuming, costly, and public.
3.) Professional estate planning is too expensive.
While there is some expense involved when you work with an estate planning attorney to draw up a proper estate plan, it could potentially cost more in the long run if you try to create an estate plan on your own.
A last will can be contested on the grounds of improper execution. If your estate was to be challenged the litigation can be very, very expensive. And, if you go it alone you may not be aware of certain steps that you could have taken to save your heirs a significant amount of time, trouble, and money.