It’s important to plan for the future, not only for you but for your family’s sake. That’s why many people plan their estate, allowing their families to inherit their assets and more.
The only trouble with estate planning is that many people have the wrong idea about how it works and why people do it. The best way to ensure you’re making the right decision is to make sure you understand what an estate plan does and doesn’t do.
Here’s what you should know:
Myth #1: You don’t need a will
Truth: Legally speaking, you aren’t required to make a will, however, you may put extra stress on your family by dying without a will. A will, essentially, ensures your last wishes are granted, or, in other words, a will makes sure your assets go to the right people.
Without a will, the state will step in and distribute your assets. While that may seem easier for you, it could mean the wrong people inherit from your estate – such as an ex-spouse or deceased relative.
Myth #2: You can wait till you’re older to make an estate plan
Truth: When people hear the words “estate planning” and “wills,” the first thought that runs through their heads is dying of old age. As a result, people put off their estate plans till later down the road. However, it may be detrimental to your health by delaying your estate plans.
One of the biggest factors of a will is the power of attorney. A power of attorney handles any medical or financial decision on your behalf while you’re still alive. The only thing is, a power of attorney is only active when you can’t make decisions for yourself – like after a serious injury or after a developed mental condition, either of which could leave you incapacitated.
Myth #3: You can make your estate plans without legal help
Truth: When it comes down to it, your estate plan is just a collection of considerations detailing how you want your assets handled, which, in theory, anyone could, but, in truth, only so many people can accomplish. Without the help of a skilled legal eye, many legal aspects can be missed in your estate plans. It’s usually better to consult someone who knows the laws when dealing with highly legal documents.