3 Harmful (But Common) Myths About Estate Planning

Apathy and procrastination are the biggest hurdles when it comes to planning estates. Some people might think that such precautions would not matter for them because of their age or economic situation--not true. In this post, we dispel a few prevalent myths about estate planning that Forbes recently listed.

1. Young people do not need to worry about their estate.

Have you ever heard the saying, "Hope for the best but plan for the worst"? How about, "Failure to plan is planning to fail"? Estate planning covers both of these maxims: hope for a bright future, but take necessary precautions. By the way, any person with dependents is old enough to plan for his/her estate.

2. The state automatically gets everything if you die without a will.

If our legal system were so straightforward, law school would be a semester and the bar exam would be quiz. After someone dies intestate ("intestate" is when a person dies without a will), each state applies its own laws regarding intestacy to determine intestate succession and inheritance. If your property is left unclaimed, it will eventually go to the state. While this scenario might be acceptable for individuals who either believe that they have nothing of value or who just do not care at all about who receives their assets, Forbes mentions that most people might want a say in what happens to their assets. Parents of minors, take note: dying intestate means that the courts determine who will receive custody of your children. If you appoint a guardian in your will, however, the courts will usually follow your wishes (exceptions would be made depending on the proposed guardian's fitness and ability to care for the children, of course).

3. Only rich people need to worry about estate planning. 

Estate planning is not limited to divvying up your worldly assets; rather, it encompasses everything from your final will to your advanced medical directive. People with a family history of Alzheimer's, Huntington's, or other degenerative diseases can plan for long-term care before their cognitive abilities become compromised. A woman can set up a trust to provide for her disabled adult son after she dies. Elderly parents and their adult children can work together to determine future caregiver roles. Although it is true that estate planning is an important part of preserving wealth, estate planning affects almost every facet of your life.

Forbes lists several more myths that are commonly held about estate planning in the full article. Whatever your justification, the benefits of estate planning outweigh the hassles. Consult with an attorney if you have any questions or concerns about planning your estate. 

To read the other debunked myths of estate planning, visit Forbes here: https://ow.ly/4Iis30ip45P

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