Many American adults currently lack an estate plan, and this could be a result of misconceptions related to the process.
In reality, preparing for your beneficiaries’ security after your passing is relatively straightforward. Here are three misconceptions that may have kept you from estate planning in the past.
1. Young people do not need a will
Though the young are less likely to pass away unexpectedly, anything is possible. For this reason, drafting a will and other estate planning documents when you own assets is wise. Your state’s laws of intestacy dictate how to distribute assets when someone dies without a will, which means your property likely goes to immediate family members. If you have different wishes for your assets, developing a will is essential.
2. Only wealthy people need an estate plan
Though the wealthy typically have more complex estates to plan, most adults benefit from creating a will and other estate planning documents. A good estate plan also designates someone to make your medical decisions in the event that you become incapacitated and plans for the care of your minor children should you die or become unable to care for them.
3. People with a will have finished planning their estate
Since an estate plan entails more than a will, discussing your preferences in the event of your incapacitation or death with an attorney benefits you and your family.
Proper planning to care for yourself and your family in case of a tragedy includes creating a comprehensive estate plan. Having these documents ready can you give peace of mind knowing you have a workable strategy in place should tragedy strike.