Simply put, estate planning is one way to leave instructions with regard to caring for all your assets in case you become incapacitated due to an illness, or if you unfortunately meet your demise. This includes a lot of legal instruments.
The legal nature and complexity of estate planning led majority of Americans to believe that estate planning is only for those who can afford it: the rich and the A-Listers. Below are other misconceptions you need to ward off before they prevent you from making one of biggest and most important decisions of your life.
“Relax, I’m Too Young”
How old are you? 20? 25? 30? You will never know when you’ll need a sound estate plan, and by then, it’s going to be late. While you may not want to foreshadow your imminent misfortune or death, it’s necessary to take some measures, even if they’re in small increments. As an advanced directive, a health care power of attorney and living will can be of great help in case you’re attached to a life support device and other end-of-life matters.
“If I Pass on Without a Will, the Government will Seize My Assets”
This myth is highly damaging. In case you die without any will or supporting legal instruments, each state will apply a special rule, which you may call “rule of intestacy.” This will identify who will get what. If this sounds a bit of a problem for you, now’s the right time to have a will drafted.
“Probate is Costly”
Probate is a legal instrument that serves as a first step in administering your estate in case the inevitable happens to you. Probates have a price that comes in the form of lawyer’s fees, filing fees, and other costs of miscellany. But sometimes, the price of the entire estate outweighs the price of a probate, so it’s always worth it to have it.
“I Need a Lawyer to Draft My Will”
This is not applicable to all situations. If you think your estate is sizable enough, you can draft your documents and have them signed by legal experts. It may cost little to nothing at all. But that doesn’t mean you don’t have to get a lawyer. There are some provisions that may complicate an issue and warrant an expert advice. If this is your problem, you can always consult us and have us go through your draft and make some suggestions.
Estate planning is not only about assets protection. It’s not only for the rich and the A-Listers. It’s for everyone. It’s for you who wants to make sure that all the things you worked hard for will be in good hands, and most of all, prevent chaos in your family. Browse our pages to see other services that may help you with this.