Even though the idea of estate planning is somewhat straightforward, a lot of people are uncertain about what the planning actually involves. This uncertainty has created some common myths concerning estate planning.
Regrettably, these myths sometimes impede people from placing a plan together that can help them safeguard their family, money, and property in the event of their passing or debilitation. Estate planning documentation provides peacefulness. But more significantly, wills and trusts are legally enforceable documentation that guarantees your final wishes are going to be carried out.
Debunking Common Myths Surrounding Estate Planning
There are many myths surrounding estate planning. Below are some of the more common ones.
Myth 1 – Estate Planning is Only for the Rich
Contrary to popular opinion, estate planning isn’t solely reserved for the rich. It is a method that benefits individuals of all financial standings. In fact, everybody has an estate, irrespective of the extent or complexity of their assets.
Estate planning guarantees your wishes are honored, expedites a smooth transfer of assets, and decreases the possibility for disagreements among family members.
Myth 2 – I’m Too Young to Begin Estate Planning
Age should not be a factor in terms of estate planning. Unfortunate events can happen at any chapter of life, and having an extensive estate plan in place guarantees your desires are known and honored.
Myth 3 – A Will is Adequate for My Estate Planning Needs
Whereas a will is primary estate planning documentation, being solely reliant on it may leave considerable gaps in your plan. It’s vital to understand that a will is going to go through probate, a court-supervised method that takes time and is costly.
Myth 4 – Estate Planning is a One-time Occurrence
Estate planning is a continual process that requires routine reviews and updates. Life occurrences like marriages, divorces, births, deaths, and changes in financial situations require adjustments to your plan. Failing to review and keep your estate plan updated can lead to inadvertent consequences.
Myth 5 – I Can Do Estate Planning by Myself
Whereas it may be tempting to DIY your estate plan, speaking with an experienced estate planning attorney is definitely recommended. Estate planning involves complicated financial and legal considerations, and an attorney can offer indispensable counsel designed for your specific circumstances.
These are only a couple of the myths surrounding estate planning. The challenges are significant when you are transferring along everything that you have amassed to those that you love, and there is no reason for cutting corners.
Addressing Worries and Concerns About the Process
A lot of people are overwhelmed by the convolution concerning their finances or by their disordered family relationships; some are scared to think about their own mortality; some are indisposed to surrender management of their assets or bestow cash or earnings to their child(ren), and some simply do not want to pay another attorney´s fee. These and other reasons for dawdling could cost you a fortune.
The Cost of Poor Estate Planning
Regardless of the reasons for putting off estate planning, the tax burden can be disastrous to your heirs. In some circumstances, due to substandard planning, heirs have been required to sell off beloved assets like a family business or house, at blowout-sale prices, since the estate didn´t have adequate assets to fund the estate tax.
Relationship Issues – Discussions concerning financial issues can be very sensitive or even forbidden in some families and can incite existing strains. You may tend to put off estate planning just to avoid coping with those strains.
It is usually best to begin by assuming that these strains arise from simple disagreements concerning priorities, morals, objectives, or consultants.
Fear of mortality – Thinking the reality of your own death is not enjoyable.
It is instinctive to feel some stress about creating a will, appointing executors and guardians, financing life insurance policies, and being aware that people are going to be appreciating your wealth after you have passed away.
Perfectionism – A lot of decisions that have never made because of the concern of making the wrong ones. Estate planning includes making decisions that can have a serious effect on the lives of relatives, let alone your own financial protection, and the outcome of making significant mistakes can instill panic in anyone.
Fear concerning estate planning attorneys – Many of us have heard horror stories about inept or deceitful hospitals, auto repair places, attorneys, and other service suppliers. These stories might keep some people from speaking with legal advisers in helping plan their estates. These stories, while both scary and seductive, fail to impart the many favorable experiences that people have with professional consultants and service suppliers.
Fear of losing financial protection – When concern about your financial protection interferes with your planning for the future, it might help to evaluate the comparative significance of money, good health, mental well-being, and family support in bringing about a sense of hope and protection. Attaining a sense of balance among family, health, spirituality, and finances is the actual key to protection.
Educating Readers on The Realities of Estate Planning
Estate planning is for Everybody. People with lower incomes require estate planning even more than those people are rich. There are laws in every state that give higher-income people funds to use until they work out estate plans for a family member that has passed away—but those with lesser income must do it on their own, and the process can be complicated should there be no plan in place.
Begin Early and Update Your Plan Frequently.
You might presently be estate planning without the knowledge you are. Should you ever have to fill out 401K documentation for work, there is a beneficiary portion on there. Make sure you update the beneficiary named on that 401k, life insurance, and pension documentation. A lot of young people tend to put one of their parents down and fail to remember to update it should they get married or have children.
Should you be single, estate planning is even more vital. There are laws in place if you’re married or have children—in a lot of states, your spouse typically gets everything.
Estate Planning Is Not Just for Following Your Life.
Planning for debilitation is another vital part of estate planning. A living will provides you with the chance to say what you would want to occur in case you become debilitated in some way in order for your family members not having to bear the burden of that decision.
Hire An Attorney.
Out of all the things you can do yourself, your will most likely shouldn’t be one of them. Sure, attorneys are costly and there are ways in which to create wills online, but retaining an estate planning attorney is going to aid in guiding you throughout the process—errors made in your estate plan might send you to probate court. The process is lengthy, public and might end up costing you much more money in attorney costs than just going to one to establish an estate plan. If there is one thing you need to lawyer up for, it’s estate planning.
Arizona Family Law
Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.
There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.