Estate planning myths can confuse and mislead you about how the process works. However, a lot of people are unsure how they can benefit from estate planning. Regardless of your age and financial status, you can start preparing for the future now. A reliable Cherry Hill NJ estate planning lawyer can debunk some of the estate planning myths and tell you why should take action today. These myths include the following:
Estate Planning Is Only for Older People
Having an estate plan in place will protect you and your family no matter what happens in the future. Unfortunately, a lot of young people die unexpectedly and without an estate plan, the surviving family members are greatly impacted. So, no matter how young you are and the size of your estate, you should consider drafting a plan as soon as possible.
A Will is Only Necessary for Wealthy People
To successfully transfer your assets to the right people after you die, you must create a comprehensive estate plan. For instance, you can create trusts that let you distribute your assets without court intervention. Also, irrevocable trusts protect your family members from creditors and lawsuits following your passing. Sometimes, a grantor trust can also be a useful estate planning instrument. Remember that such tools do not just benefit wealthy individuals.
A Will Lets Your Heirs Get their Inheritance Right Away
When you die, your family may go through the probate process when you just left behind a will. Thus, the court will have to oversee the process. This process can take months, so your heirs must wait until it is over before they can get their inheritance. However, you can avoid probate by setting up a living trust that includes your assets. You must designate a trustee to manage the trust and name your beneficiaries. This allows your surviving loved ones to avoid the probate process.
You Can Use Online DIY Documents to Plan Your Estate
Free legal sources that can help you plan your estate are available online. Unfortunately, these are flawed documents and using them when drafting an estate plan can allow for disputes over your will. These poorly drafted documents may cause your loved ones to encounter issues while trying to settle your estate.
Estate Planning is Meant to Manage your Assets
While your personal finances play an important role in estate planning, other considerations must be addressed. These include a power of attorney, guardianship, healthcare preferences, and beneficiary designations. Remember that you must communicate with your loved ones about such decisions to ensure everybody is on the same page.
