Having a conversation around estate planning isn’t on the top of anyone small talk list, but it is crucial to your life plan. There are many different myths and misconceptions around estate planning, but here are some of the myths and misconceptions that my clients have approached me with more frequently.
1. Estate Planning is Only for Wealthy People
This is far from the truth: estate planning is necessary for everyone. It doesn’t matter how much money you have in your account or how many assets you own. You want to be sure that whatever you do have is distributed to the people that you want them to go to.
2. Estate Planning is Something to Worry About in the Future
Not true, you want to start estate planning as soon as you start accumulating assets. Whether it’s a necklace that was passed down to you by your mother or a car you just purchased, you need to start thinking about your estate plan. It doesn’t matter if you’re 21 or 55, if you have assets and belongings that mean a lot to you, then it’s time to plan the allocation process to your loved ones.
3. Being Married Means It’ll Go to My Spouse
Although being married makes dividing your assets seem a lot easier, there are a lot of things that can change that, but there are a few questions you should consider.
- What if after you pass, your spouse remarries, or you and spouse pass together?
- What if there are certain things that you’d like to go to your children?
- What if your spouse gives your important assets to someone you don’t want them to go to?
These situations do come up frequently, but without an estate plan, your finances to be left in disarray.
4. Thinking, “My Family Will Do the Right Thing”
This is probably the most irresponsible thing you could do. Your family is already running around coming up with funeral arrangements and checking off all the boxes on their to-do list, the last thing they want to worry about is giving your assets to the wrong person. By taking the time to make your wishes clear, you will be able to trust that your family will take care of things the way you would have wanted.
Estate planning is a crucial part of everyone’s life plan and can make your families life a bit easier and less stressful when you pass. To continue reading more about estate planning myths and misconceptions, I urge you to read part 2 of this blog. Are you ready to get started on your estate plan? Contact me at Paula Smith Law, and I will get started with you to answer any and all questions you may have.