What are the biggest myths about estate planning?

Many Florida residents are probably under the impression that estate planning is difficult. In some cases, they are right. But, there are quite a few misconceptions about estate planning. So, what are the biggest myths about estate planning that our readers should know about?

For starters, probably the biggest myth is that the only people who need to worry about estate planning are “rich” people. Why is this the biggest myth? Well, mostly because many people aren’t really thinking about just how much they have in assets. Think about it — the average family owns a home, a couple of cars, retirement accounts, jewelry and many other valuable assets. Are they “rich?” Perhaps not. But they do have quite a bit in the way of assets. Proper estate planning can help ensure that those assets get distributed to the right people upon death.

Another big myth is that all you need is a will and your estate planning is done. While in many cases a will is all a person needs, our readers shouldn’t forget about another big estate planning tool: trusts. Some people will find that their own unique financial situation would be better served by establishing a trust to accompany a will.

Lastly, another myth is that estate planning is only for elderly people to be concerned about. That couldn’t be further from the truth. Young couples, especially couples with children, will want to start thinking about estate planning so that, at the very least, they designate a guardian for their minor children in the event of some unforeseen tragedy.

As this shows, there are a number of reasons why it is good to have a well-rounded estate plan. With the right plan in place, you can ensure your wishes will be carried out once you pass away.

Source: wealthmanagement.com, “Five Myths to Overcome with New Estate-Planning Clients,” Patrick Carlson, July 12, 2017