Estate planning isn’t one of those fun topics to discuss. After all, you are discussing what happens to your assets after you die. However, it is critical to work with an estate planning attorney summerville sc to decide what happens to your estate after you die.
Estate planning involves deciding what happens to assets such as real estate and bank accounts. It also includes minimizing the amount of taxes you need to pay and identifying the loved ones and other people you want as your heirs. Unfortunately, estate planning has a lot of myths surrounding it. These myths often stop people from pursuing the peace of mind that comes with making decisions about how their estate is distributed. The following are five of the most common estate planning myths.
1) You Don’t Need Estate Planning. Your Estate Will Automatically Go to Your Spouse
This is a bad myth. Yes, your spouse may get your assets. However, you must think about everything that can happen. For example, you and your spouse die at the same time. This means your assets and property will go to someone else. Who will that be? It’s best to plan for the worst just in case it happens.
2) You’re Too Young to Plan Your Estate
The painful reality is that many people die young. This means that it doesn’t matter how old or young you are. You want to work with an estate lawyer to provide for your parents or any other heirs in the event of your death. It is peace of mind that you know that your final wishes will happen regardless of what age you die.
3) You Don’t Have Enough Assets to Need Estate Planning
Estate planning isn’t only for wealthy people. It doesn’t matter how much money or assets you have, they must be distributed to someone after your death. You may not think of your life insurance or 401(k) as part of your estate. Who will care for your pet if you die? They are part of your estate too. Whether you have insurance, or you have pets, you must determine who will get what after you die.
4) You Don’t Need Estate Planning Because You Told People How to Divide Your Property
You hear about those situations when a person dies, and their family members go into their homes and automatically start dividing up personal possessions and closing bank accounts. This can be stopped with estate planning. You will name an executor of your estate. This person is the one you trust to carry out your plans after you die. It’s important that you let the person you designate as your executor know about their duties. This will help them know how to take charge of the situation after you die and prevent people from taking your belongings.
5) You Planned Your Estate So You Don’t Need to Update It
That is a big, big myth. It is great that you took the step to plan your estate with an estate attorney. However, you are required to update your plan at least every two years. This will keep up with the changes in your life. For example, you may decide you want a different executor than the person you have named now. This can often happen when your executor dies, you have an argument with them, or they move. Another reason to update your plan is because you may get married, have children or an heir may need to be removed. You may also need to change your estate planning because of an insurance policy or divorce.
Outdated estate planning documents can cause problems. You don’t want to create difficult situations that you can’t correct because you are no longer around. For example, your ex-spouse receiving your assets when you planned for your assets to go to your partner, but never made the change. Thus, keep your estate planning documents updated as much as possible.
Contact a Lawyer Regarding Your Estate
Unfortunately, many people may believe the estate planning myths and die without planning their estate. This means that often probate courts decide what happens to a person’s assets. In fact, the state may decide to distribute a person’s assets to individuals they’d never want as their heirs. Estate planning guarantees that your loved ones will have what they need when you are no longer alive to financially provide for them. It also gives you the power to make decisions about your property and assets after you die.