Far too many people are not properly prepared from an estate planning perspective, and the inaction often stems from some widely embraced misconceptions. In this blog post we will look at three of them so that you can understand the facts and take the appropriate actions to protect your family.
Estate Planning Is Only Relevant to Senior Citizens
One of the most damaging misconceptions out there is the idea that estate planning is only important for people who have reached an advanced age. Clearly, if you don’t have an estate plan in place when you are 75 years old, you probably ought to get started sooner rather than later. At the same time, estate planning is actually important for all responsible adults.
If you are married, you have someone depending on you, and this dynamic is significantly amplified if you have children. When you plan your estate, you make sure that your loved ones have something to draw from if the unthinkable was to take place.
Even if you are single, you should make sure that your wishes are known so that your resources get into the appropriate hands.
I Can Create My Own Will Online
You may assume that you should use a last will as the centerpiece of your estate plan if you are not extraordinarily wealthy. There are websites on the Internet that sell do-it-yourself downloads and worksheets, and you may decide that you will create a last will at some point on your own, and everything will fall into place after you pass away.
In fact, a last will is not the best choice for many people. There are various different trusts that can yield important benefits, and the ideal asset transfer vehicle will vary depending on the circumstances.
Plus, when it comes to these DIY notions, Consumer Reports advised against do-it-yourself estate planning when they evaluated feedback that was provided by three different prominent legal professors.
The Government Will Handle Everything
The last misconception that we will look at here is the idea that the government will step in and take care of everything appropriately if you pass away without an estate plan. It is true that the probate court would supervise the administration of the estate, and there are intestate succession laws on the books. Intestacy is the condition that exists when someone dies without an estate plan.
When these laws are applied, people that you love may be disinherited, and short of this the distributions may not be consistent with what you would have wanted.
To put it quite simply, estate planning is one of the core responsibilities of adulthood. If you go through life without an estate plan, you are putting your loved ones at risk.
Our firm can help if you are ready to take action. You can contact us through this page to set up an appointment: Sacramento CA Estate Planning Attorneys.
- Living Trusts and Incapacity Planning - March 31, 2020
- Estate Planning and Charitable Giving — Key Points - March 29, 2020
- Over-Funding Your Retirement Plan: A Potential Estate Planning Problem - March 27, 2020