In Palm City Estate planning is an incredibly misunderstood process. Some of the misconceptions about this area of the law would even be considered comedic if they did not have the potential to be so damaging.
Unfortunately, estate planning misconceptions pervade our society, and they are detrimental to your wealth, your wishes, and your loved ones. Below we have outlined seven particularly damaging misconceptions about estate planning:
Many people believe that you only need to draft a will or plan your estate if you are elderly. However, take one look at auto accident statistics in the US and then decide how confident you feel that you won’t have to worry about an estate plan until you are older. Accidents happen every day, and young people have assets and loved ones just as seniors do. Additionally, proper estate planning goes far beyond simply distributing your assets. Which brings us to the next misconception…
“I don’t have enough assets to worry about estate planning,” you might say. This could not be further from the truth. Estate planning is not just about your assets, though, chances are you probably have more assets that must be administered than you realize. There are vital aspects of the estate planning process, such as creating a durable power of attorney that designates an agent to handle your financial or medical affairs in case you are ever incapacitated. There is also the Living Will which allows you to designate your wishes with regard to end of life treatment. Estate planning is vital and beneficial for people in every tax bracket.
See the misconception we just discussed above. Estate planning covers much more than just your assets. While you can use estate planning tools to help keep certain assets out of the probate process, some aspects of your estate may need to be administered through probate. Estate planning is much more complex than a simple probate-avoidance tool.
Just about every document in your estate plan should be a living document. In other words, you cannot simply create your will and never think about it again. Our lives can change in an instant, and your estate plan should be constantly updated to reflect your current circumstances.
This is not only untrue, it is unfair to your loved ones. By neglecting to create a thorough estate plan, you are putting your family in the sensitive and difficult position of deciding for themselves who gets what, or who acts in what role. This can lead to conflicts that have the potential to tear loved ones apart for good. It is much better to have a plan in place so that even if your loved ones are angry about your wishes, their anger is directed at someone who is no longer around rather than loved ones who are still living.
While your surviving spouse may be entitled to any joint marital assets, all of your assets are probably not considered joint. You likely have some separate assets, whether obtained prior to marriage or otherwise, that your spouse technically does not own. He or she will not automatically be entitled to inherit these assets when you die. And if you either you or your spouse have descendants from a prior relationship, the entire equation can change drastically!
With the advent of online companies like LegalZoom that provide cheap templates for legal documents, many people believe that they can handle their estate planning on their own. Or worse yet, they believe that they can simply write some of their wishes down on a napkin or a piece of paper and sign it and expect it to serve as a Last Will and Testament. Florida estate planning is an incredibly complex and nuanced process, and templates are not specific to your unique goals and needs. There is far too much at stake to do it yourself if you are not a trained professional. You should always utilize the services of a knowledgeable estate planning attorney.
If you are interested in getting started with the process of protecting your loved one’s future financial security along with your legacy, please give the Law Offices of John Mangan, P.A. a call today.