Estate planning is a complicated process, but people can make it harder by listening to misinformation about the process — and misinformation is everywhere.
To help ensure that you don’t have issues when making an estate plan, you may need to consider reading the following debunked myths:
Myth 1: You don’t need an estate plan until you’re older
Truth: While many people do find their estate plans usually once they’re older, there’s nothing stopping you from making your plans now. Making an estate plan as a young adult can be beneficial.
For example, if you have children, you could name a guardian for your child to take over in an emergency. A child guardian would be able to look after your children after an accident or medical condition. The child guardian would be able to have most of the same rights you have to raise your children if you’re unable to do so.
Furthermore, you can name a power of attorney. A power of attorney would act on your behalf if you’re incapacitated. They would be able to manage your medical and financial matters.
Myth 2: You can only have a will or a trust exclusively
Truth: Many people find that making a trust is better than will. For starters, you could limit estate taxes and possibly avoid probate by using a trust. That doesn’t mean you can’t make a will. Having a trust and a will could allow you broader options with your estate plans and better achieve your goals.
Myth 3: You can draft your estate plan by yourself
Truth: While many people prefer to do a lot of things themselves, estate planning shouldn’t be one of them. It takes experience to know all of the available options for an estate plan and a single mistake could cause massive problems for your heirs. Experienced legal guidance is always wisest.