12 Estate Planning Myths and Misconceptions

12 Estate Planning Myths and Misconceptions

Estate planning is for the rich

We listed this myth first because it is the most common of them all.  It is important you note that estate planning

is for everyone, the rich and the poor. It doesn’t matter the value of your estate. If you fail to plan your estate, you won’t have a say over who inherits that precious asset of yours. It could be a painting, a sculpture, or anything that is of value to you. So you don’t necessarily have to be as wealthy as Warren Buffet, Elon Musk, or Bill Gates before you consider planning your estate.

I’m married; my assets will be transferred to my spouse

Here lies another common misconception. Of course, being married can make the transfer of your assets less difficult. But what if things change? Have you thought of a situation where your spouse decides to remarry? Or what if your spouse kicks the bucket?  These situations happen on a regular basis, which is why you ought to plan your estate to avoid certain misfortunes.

Being too young to plan an estate

Some adults believe that they are too you young to have an estate plan. They want to grow grey hair before they do the needful. What they fail to realize is that death can come knocking at any time. If death comes and you are yet to plan your estate, your family and loved ones will be the ones to suffer. As soon as you clock the age of 18, you are already eligible to plan your estate. You can plan your estate at an early age and update it, as you get older. The earlier, they say, the better.

There is no way to plan or digital asset

Most people don’t consider it a necessity or probably ignorance on how to estate plans concerning their digital assets. They end up dying without their family even knowing anything about their assets. As you make plans for your physical assets, do likewise for your crypto and digital assets.

I can get a reverse home mortgage easily

A reverse mortgage is a type of loan for senior citizens at least 62 of age, whereby the individual can convert their home’s equity into spendable cash income. In simpler terms, reverse mortgage allows the individual (homeowner) get the cash value of their home’s equity. Reverse mortgage is only available to senior citizens who have attained 62 years of age. That is because it is an effective strategy for retirement planning. Seniors can use the funds gotten to supplement their retirement income.

You can plan your estate yourself

Estate preparation is not one of those DIY challenges. You will surely need the help of an expert if you want a top-notch estate plan. If you decide to plan it yourself, you could make certain mistakes that could jeopardize your estate plan. So be wise.

Last Will and testament is all you need for estate plans.

This is another myth that is misleading and could be very costly. A will is a legal document that instructs how your property would be shared after your death. It allows you name an executioner, who would oversee the implementation of the will and also through probate process. It is however important to note that certain assets may sit outside your Will and that your will does not cover other areas of your life while you are still alive

Estate planning is not all about property and asset distribution.

Estate plan is not just about distributing properties. It deals with other important matter that are intimately personal. Incapacity planning is an area of estate plan that details with more than just managing assets during or after one’s lifetime.

My estate is not big enough so I don’t need to plan.

This is the most common myth about estate planning. Often, people believe that estate planning only benefits the extremely wealth, but this is so far from the truth. The reality, however, is that you need an estate plan no matter how much property you have.

I don’t need to revisit and review my prepared estate plans.

One mistake could prove costly and debunking this misleading myth would help prevent that. Life changes, laws changes and so also estate plans should be revised to fit these new changes. Estate planning is never a once and settled thing. With the help of an estate planning attorney, you can constantly revisit and upgrade your estate plans.

I don’t need a Medicaid

With the cost of private home care service increasing each year, individuals are looking for better alternatives. Currently, there is no better and cost-effective alternative than Medicaid. However, Medicaid is not for everyone. In fact, to enjoy the benefits of this government-funded health care program, you will have to be eligible.

Bottom line

A competent lawyer can help you prepare an estate plan that mirrors your intentions. One that makes you live each day in confidence. A good attorney has the necessary resources needed to plan a top-notch estate plan. They also have the experience and expertise, something you are lacking when it comes to making an estate plan. In addition, they are good at debunking misinformed myths about estate planning with reason.

Contact us today

Contact us to plan your estate. Our estate lawyers are one of the best out there. Remember, the earlier the better so don’t hesitate. Now is the time for estate planning, so plan your estate now!

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