Estate planning is a complicated process that the average person can easily get confused about.
While there’s a lot of information online about estate planning, some of it may not be factually correct. To ensure you’re going in the right direction, you should consider the following myths about estate planning:
Myth 1: You don’t need to make an estate plan
Truth: You may have been told that the state will handle your estate when you pass away. While that’s true, the state likely won’t follow any of your wishes. That means, if you plan on giving something special to your family, friends and loved one’s, then your final wishes may not be met. Additionally, if you have children, then an estate plan may include a guardian designation. This ensures that your children are cared for by someone you trust in case you’re in an accident or suffer a medical condition.
Furthermore, you may want to consider naming a power of attorney. A power of attorney is a representative who acts on your behalf in case you’re incapacitated. After an accident or medical ailment, a power of attorney can help manage your health and financial decisions.
Myth 2: You don’t need to update your estate plan
Truth: While you may be under the impression that an estate plan is a one-and-done process, that belief may not be to your benefit. It’s often said that people should consider updating their estate plans every couple of years and after big life events. For example, marriage or childbirth are both big reasons someone would want to alter their previous estate plan arrangements.
Myth 3: It’s better to handwrite your will
Truth: While it may be cheaper to write your own will or find a premade online template, there are a few problems that you and your family could face. For starters, a handmade will or template may not be legally accurate or valid. To ensure your estate plan is in order, then it may be wise to reach out for legal help.