There are a number of misconceptions that people sometimes harbor about estate planning, and we would like to take a look at three of them here.
1. Estate planning is not important yet because I’m still relatively young.
There is a lot of procrastination when it comes to estate planning, and the idea that there will always be time to do it in the future is one of the reasons for this. In fact, it could be argued that estate planning is even more important for younger people, especially if they have children.
Who would take care of the children if both parents were to pass away? How would they get by financially? These are questions that you answer when you put an estate plan in place.
2.) I should use a will to arrange for future asset transfers because trusts are only for very wealthy people.
This is another common misconception. Last wills can be utilized, but if you state your final wishes this way the estate must be probated. This is a legal process that can be expensive and time-consuming. By creating a living trust you bypass probate, and you don’t have to be extraordinarily wealthy to create one of these legal devices.
3.) I can plan my own estate using DIY forms that I download off the Internet.
Technically, you can indeed download forms and fill in the blanks. However, experts have found that these DIY documents are often times quite flawed, and you may not be executing all the documents that are appropriate or necessary given your unique personal situation.