Estate planning is often thought of as a task reserved for retirement-aged individuals preparing wills. The process lays out a plan of action for families to follow should an individual be incapacitated or unable to make an informed decision. While some individuals recognize the importance of estate planning, many are convinced it’s unnecessary. Here are three of the most common myths surrounding estate planning.
Without a Lot of Assets, Estate Planning Is a Waste of Time
Truthfully, everyone needs an estate plan, even if they have only a modest amount of assets. A solid estate plan provides a clear outline of the distribution of assets and works to reduce any confusion or arguments that may occur. Starting an estate plan, even with a small number of assets, will give families and loved ones clear directions on how to handle medical decisions, asset distribution, and settling ownership of property.
Estate Plans Are for Retired People
Most retirement-aged individuals already have an estate plan in place because they understand the importance of looking out for their families. However, estate planning is beneficial for everyone in the workforce, whether they’re just starting out or are midway into their career. There is no minimum age for an estate plan. The point of an estate plan is to prevent confusion when it comes to managing a person’s estate. Waiting until later in life is not always the best idea.
A Will Is All a Person Needs to Cover Asset Distribution
While a will is beneficial, it’s actually just the tip of the iceberg when it comes to estate planning. A good will can help with asset allocation and distribution, but it won’t cover considerations like end-of-life care. Wills are simple documents that provide general guidelines, but an estate plan will give detailed explanations of what an individual wants to do with all aspects of their estate.
Start an estate plan before it’s needed. This way, loved ones and family will have a clear idea of what needs to happen with assets, end-of-life care, final wishes, and property. It’s never too early to start planning for the future.
This information is not intended as authoritative legal advice. You should consult with your attorney or advisor for guidance on your specific situation.
Special thanks to NATO Training Mission-Afghanistan for the image.