For as long as estate planning has existed, confusion and misunderstandings about the process have appeared. Part of the issue may be that the internet is so large, which makes it harder to stop estate planning myths.
Here are a few myths about estate planning that should end:
Myth 1: Estate planning is not necessary
Truth: Many people do not make estate plans, but that does not make it unnecessary. The main purpose of planning an estate is so that assets are managed respectfully and family members and loved ones are remembered.
Dying without an estate plan means that a court will use state intestate laws to determine how to distribute the estate. This may not work out how the deceased would have liked.
Myth 2: You should wait to plan your estate
Truth: Many people think that it is better to plan an estate when they are older and have more assets. However, estate plans can also be used to control health care decisions. A power of attorney could be included in an estate plan who can act on behalf of the testator if they become incapacitated. This can benefit anyone of any age who could develop medical issues or suffer from an accident.
Myth 3: You can not add friends to your will
Truth: Without a will, assets typically only go to family members. However, a will allows you to name anyone as a beneficiary of an estate. The testator could name friends, godparents, charities and even neighbors as beneficiaries.
Myth 4: A will is better than a trust
Truth: A will is typically the main document in an estate plan. However, using only a will could lead to estate taxes, probate and contests. People can include trusts in their estate plans to help secure their assets better than a will in certain circumstances.
If you have questions about the estate planning process, then you can reach out for legal help to learn more.