There are numerous reasons why everyone, including individuals who do not have lots of assets, needs an estate plan. Such a plan benefits more than solely the rich because these documents help establish power of attorney and cause married couples to bring all their assets to the table for consideration.
Unfortunately, many people continue to delay creating estate plans or develop plans that are incorrect to some capacity due to the numerous myths that persist. It is vital to separate truth from myth so that individuals can do what is best for their families.
Myth: Estate plans are only for the old
Hopefully, everyone will have long, healthy lives, but the unexpected happens all the time. People need to be ready for tragic events, especially if they have recently received significant assets or undergone a big life event. Estate plans are particularly critical for anyone with children. It is vital for parents to appoint a guardian should anything happen to them.
Myth: A will is all you need
When most people think of an estate plan, they think of a will. Everyone needs more than simply a last will and testament to ensure beneficiaries receive everything they need. A will covers belongings, such as family heirlooms and cars, as well as real property, cash and other assets. All the items listed in the will must go through probate, though, so placing items in a trust ensures that heirs benefit from the assets right away.
Myth: You cannot change an estate plan
This myth is simply not true. People can absolutely alter a will and trust throughout their lives, and most legal professionals recommend doing so frequently. Waiting until they are certain they will not have any more children is unnecessary. Parents can create an estate plan when they have their first child and update it throughout the years as often as they need to.