As one of your New Year’s resolutions, you may have decided to make an estate plan. Drafting an estate plan can be great for you and your family and friends so that there’s no confusion about what to do with your estate after you pass away.
However, estate planning can be a confusing process. As a result, many people misunderstand certain estate planning matters. To avoid any misleading estate planning myths, you may need to read the following:
Myth 1: It’s better to not make a will
Truth: Many people die without a will, but that doesn’t mean it’s the better option. Without a will, the testator would die intestate. Intestate means that the state would need to handle the asset distribution process, which may lead to the wrong people inheriting assets. The purpose of a will is so that the testator can have control over how their assets are managed after they pass away.
Myth 2: You only need to draft an estate plan once
Truth: Estate planning is a complicated process that many people don’t want to go through twice. However, estate planning is a lifelong process. In other words, testators may need to update their estate plans many times over their life. These changes may include removing or adding beneficiaries or assets, for example.
Myth 3: people must be older before they draft their estate plan
Truth: While most people hope that their estate won’t be useful until they’re much older, it’s not always the case. An estate plan may be necessary for someone much younger who has suffered from a medical condition. If their medical condition incapacitates them, then a power of attorney may need to make decisions on their behalf. A power of attorney is a representative that can be added to an estate plan.
Knowing how to draft your estate plan may require help from legal guidance.
