Many people are not aware of estate planning laws. As a result, a lot of misinformation about estate planning is spread around.
It can help to explore common estate planning myths and why these myths are wrong. Here are a few:
Myth 1: Estate planning is only for the rich
Truth: Many people believe that the only reason to have a will is because they have a sizable estate to distribute. The truth is that an estate plan can be used for more than just asset distribution. People can use estate plans, for example, to control their end-of-life care if they can no longer care for themselves. Furthermore, an estate plan can include a guardian for a minor child.
Myth 2: It is better to use premade estate plan documents
Truth: There are many premade estate plan documents online that can be acquired cheaply. These documents may seem easy to use, but that does not mean they are legally sound. Many premade estate planning templates include inaccuracies and fail to consider state estate planning laws. Many of these templates may not be legally valid, creating issues after a person passes away.
Myth 3: You do not need to update your estate plan
Truth: Estate planning is a lifelong process. People should consider updating their estate plan regularly – typically every three to five years. Updating an estate plan helps people change their last wishes. An estate plan can also be updated to include new documents, such as trusts, powers of attorney and beneficiaries.
People looking to make their estate plans may consider having their questions answered with the help of legal guidance.