Estate planning can look daunting. But when life throws you a curveball, you want to be ready for whatever comes your way.
Estate plans are crucial for controlling asset distribution. That’s especially the case if you possess things like a family farm, a business, inheritance or luxury antiques. As there’s a lot that goes into estate planning, misinformation about the process is easy to find.
4 false facts about estate planning
Knowing what information is and isn’t credible isn’t always easy. For that reason, here are a few myths about estate planning and the realities that surround them:
- You don’t need someone else to take over: Once you establish your plan, you may want to set it and forget it for a while. However, as you age, your mental state can deteriorate. Because of this, you may not remember the wishes you initially put in place. Thus, you may want to consider designating a trusted loved one as a beneficiary, giving them a power of attorney to represent your best wishes. However, you should think about who qualifies and if they’ll act in your best interests.
- You can’t change your plan once you’ve established it: Life can change as people age. Whether you’re becoming a grandparent or decide to sell your business, many of these events involve financial planning. When these things happen, it’s essential to adjust your estate plan to your current situation.
- You only need a will to distribute assets: Wills can give you control over asset distribution. However, these documents also have certain limitations. A will usually only covers assets in a single person’s name. That could mean your spouse or beneficiary may be denied access to joint accounts or other specific assets.
- I can deal with estate planning later in life: If you recently got married or had kids, you may think that formulating an estate plan isn’t a pressing issue at the moment. However, laying out the guidelines now can help provide you and your family a safety net if the unexpected happens.
Our lives are more hectic than ever. With all of your daily responsibilities, estate planning may be the last thing on your mind. But by formulating a solid plan, you can prepare you and your family for life’s twists and turns, providing you and them with a sense of security.