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What are some common myths about estate planning?

Wills and other estate planning tools protect your assets, but they also safeguard your family after you are gone. Also, a solid estate plan can even benefit you while you are still alive.

Unfortunately, myths surrounding estate planning can prevent people from making reasonable decisions. Here is the truth on a few common myths to help you create a reliable plan.

Only extremely rich people need estate plans

Virtually everyone needs some sort of estate plan. Even if you have a relatively uncomplicated estate, a will and other tools will ensure your family receives your assets in the manner you desire. If you do not have a plan in place, the court will make decisions on your behalf. Along with potentially going against your wishes, your loved ones may also experience conflict without a solid estate plan in place.

You can wait until you are older to create a will

You must create an estate plan as early as possible to ensure comprehensive protection. For example, you can select a guardian within the will to ensure your children will receive the proper care after you are gone. You can also use your estate plan to establish long-term care for yourself, which is crucial in case of incapacity.

Additionally, a will covers all your property and assets

It is true that a will is an essential part of an estate plan. However, there are many other tools you can use to provide your assets to your heirs. For instance, retirement accounts and life insurance policies have beneficiary designations, which enable the immediate transfer of proceeds to heirs after your death. In the event the information contained in the will is at odds with beneficiary designations, the designations have authority.