4 Estate Planning Myths That Put Your Loved Ones at Risk

Many Americans are neglecting estate planning. A 2024 survey by Caring.com found only 32% of Americans have a will – a 6% decline from 2023. Similarly, Ameriprise Financial revealed that over half of couples lack an estate plan. This gap between understanding the importance of estate planning and taking action can lead to unnecessary complications. Let’s debunk some common myths and explore how they can jeopardize your loved ones.

Myth 1: “I don’t have enough assets to need an estate plan.”

Estate planning isn’t just for the wealthy. It’s about protecting the people and things that matter to you, ensuring your wishes are followed, and preventing unnecessary complications.

Without a plan:

• Your loved ones may face lengthy court proceedings and unnecessary taxes.
• Your children may be raised by someone you wouldn’t choose.
• Your wishes for medical care and financial management could be ignored.

An estate plan helps ensure:

• Your assets, no matter the size, go to the right people in the right way.
• Your family avoids court and conflict.
• Your loved ones receive clear instructions, saving them time and money.

Having a plan isn’t about wealth – it’s about peace of mind for anyone with loved ones or belongings they care about.

Myth 2: “My spouse and I trust each other completely.”

Trusting your spouse is important, but trust alone doesn’t replace the need for a solid plan.

Without an estate plan:

• A surviving spouse may face probate, tax burdens, or trouble accessing accounts.
• If both spouses pass away simultaneously, complications multiply, especially for children or blended families.
• Assets may unintentionally pass to a new spouse or others, leaving children without financial support.

An estate plan ensures your wishes are honored and provides security for your loved ones, even in unforeseen circumstances.

Myth 3: “Estate planning is too expensive.”

Many assume estate planning is only for the wealthy, but skipping it can lead to far greater costs down the road.

Without a plan, your loved ones may face:

• Expensive probate proceedings.
• Unnecessary taxes.
• Legal disputes that drain your estate.

The upfront cost of an estate plan is a small price to pay compared to the financial and emotional burdens it can prevent. It’s one of the most thoughtful gifts you can give your family.

Myth 4: “I don’t need to worry about who would raise my kids.”

Assuming a loved one will automatically care for your children is a risky mistake. Without a plan, a judge – someone unfamiliar with your values or family – will decide who raises them.

Even if you’ve named guardians in a will, there are common mistakes that could leave your children vulnerable. Additionally, if financial resources aren’t properly allocated, even a willing guardian may be unable to take on the responsibility, forcing the court to make a difficult decision.

An estate plan with a comprehensive Kids Protection Plan ensures:

• The guardians you choose will raise your children.
• Your children’s care and financial needs are provided for.
• The transition is as smooth and stable as possible during a challenging time.

Without this preparation, your children’s future could be left in uncertainty and conflict.

Take Action to Protect the People You Love

Estate planning myths often lead to unnecessary hardship for families. But by understanding the truth and taking proactive steps, you can ensure your loved ones are protected.

A well-designed estate plan:

• Reflects your values and goals.
• Provides clear guidance for your family.
• Reduces the emotional and financial burden on your loved ones.

Don’t wait for a crisis to take action. Let’s work together to create a plan that safeguards your family’s future and gives you peace of mind.

At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.

To learn more about our one-of-a-kind systems and services,?contact us?or?schedule a no-obligation 15-minute introductory phone call?today.