A lot of mystery and misconceptions surround the act of estate planning. These misconceptions stem from the lack of knowledge of what the estate planning process involves and the discomfort of having to make preparations for your own death. However, creating a comprehensive estate plan eases the burden and stress on your family members after you pass away. It allows them to fulfill your last wishes without guessing how you’d like your affairs handled. Below, we discuss some common estate planning myths we hear and the truth behind them.
Myth 1: I Don’t Need An Estate Plan Until I’m “Older”
Many people put off creating an estate plan because they don’t think they need it until they reach a specific age. However, estate planning is beneficial at all stages of life, especially when you’re young and may have family and minor children who depend on you. Anyone over 18 who has accumulated assets should create an estate plan. If you’re a parent with young children at home, estate planning allows you to make arrangements for your child’s care, leave them an inheritance, and name a guardian to look after them if you pass away unexpectedly.
Myth 2: Estate Planning is Only for Rich People
Estate planning is for anyone with accumulated assets, regardless of their net worth. However, individual estates are handled differently based on their value. For instance, small estates may qualify for summary administration if the estate value is less than $75,000 and there are no creditor claims. Some estate planning documents, such as your will, allow you to designate beneficiaries for family heirlooms and sentimental items. These assets may not hold great financial value, but their value to the family is priceless.
Myth 3: A Will is All I Need
Creating a will is only one aspect of estate planning. You should include other types of documents in your estate plan to ensure your family can carry out your last wishes and pass your possessions and finances to others. Other important documents you may want to have in your estate plan are revocable trusts, durable power of attorney, living wills, and advanced directives. An estate planning attorney can help you determine which documents best suit your estate.
Myth 4: I Don’t Need to Review My Estate Plan
Your estate plan isn’t a one-and-done thing. It’s important to regularly review and update your estate plan every three to five years. You should also review your estate plan after a major change in family status, including marriage, divorce, or the birth of a child or grandchild. When you review your estate plan, check to update any changes in contact information to ensure your personal representative can access important accounts related to your estate. You’ll also want to review your listed beneficiaries and change, add, or remove any as desired. In addition, check to see if you need to add or remove assets like homes, boats, and cars into your will or relevant trust.
Myth 5: I Can’t Afford to Create An Estate Plan
The cost of creating an estate plan is an investment you cannot afford not to make. Creating your estate plan costs significantly less than the legal and attorney fees your family would pay to cover the cost of lengthy probate proceedings and intestate hearings if you die without a will or other estate planning documents.
Myth 6: I Don’t Need A Lawyer To Create An Estate Plan
Using an online DIY kit or a fill-in-the-blank document may be a cheap way to create your estate plan, but it’s not the best choice. These documents fail to account for your unique needs and individual assets, which opens the door to mistakes and omissions. Hiring a lawyer to draft your estate plan will ensure your estate plan is legally valid and accounts for all your possessions.
Thomas R. Peppler — Orlando Estate Planning Attorney
Our experienced estate planning attorney, Thomas R. Peppler, will help you determine the best way to draft your estate plan based on your circumstances. Contact us for a consultation to learn how we can help you leave a legacy for your loved ones.
