Believe it or not, but everyone has an estate. When we talk about an estate, we are emphasizing everything you own.
That means your car, home, rental properties, savings accounts, and investment; everything comes under the estate.
No matter how large or small an estate you have, everyone has one thing in common, you cannot take that estate with you when you die.
Hence, before you take your last breath, you must plan your estate.
What Is Estate Planning?
Estate Planning is a simple process where you make it clear how you want your property to be treated after your death or unable to handle things on your own.
Estate planning is an important part of your life. This ensures that your estate property falls in the right hand or your family gets legal custody of it.
Estate planning has been in our lives for centuries, but people always thought that it is something that wealthy people do.
Well, estate planning laws have made it clear that even if you have a small house, it will be considered an estate and needs your consent to hand it over to your children.
Common Myths About Estate Planning
When we talk about estate planning, there are severe myths accompanied by estate planning. Today, we are here to talk about these myths. Yet, estate planning is something that people hardly talk about. So, forget about the myths.
However, these myths play a significant role in convincing people that estate planning is not their cup of tea.
So, we have decided to talk about the myths that have evolved in the market and will see how much truth these myths have.
Myth 1: Estate Planning Is Reserved For Wealthy
Whenever people talk about an estate, they think about millionaires having several estates in different regions of the world. However, this is a popular misconception.
If you have any property, whether a car, house, farmland, or any thigh you own and has monetary value, it can be considered estate. Hence, you need a plan to properly distribute them after your death.
Myth 2: I Am Too Young To Think About Estate Planning
Well, that is certainly true. But, you may never know when you might need estate planning, especially when you are working some dangerous jobs.
It is never too early to have an estate plan when you own some estates.
Myth 3: Estate Planning Is All About Distributing Asset Once You Die
Yes, estate planning is indeed about distributing your assets to family members. But this planning stands true only if you have a normal;l death.
If you are met with an uncertain accident and are incapacitated to make any decision, estate planning will not hold any power.
Myth 4: Estate Planning Can Be Done Without A Lawyer
While most estate planning might cover common situations where you would not feel the need for a lawyer; however, when we are dealing in the estate, things can get complicated at times.
Therefore, having an estate planning lawyer by your side is always a great option to ensure everything works smoothly.
Myth 5: You Do Not Have To Worry About Probate After Creating An Estate Plan
This is one of the wishful thinking of the estate planner. Well, if you have a property in one estate, the process would be smoother.
But if you have a property in an estate, the whole matter needs to pass through the probate court. You must understand that the Will directs the court with the distribution; it doesn’t avoid the probate processes.
Myth 6: Executing Estate Plan Can Be Done Quickly
Executing the estate plan can be completed in one day. No, the execution of the estate plan takes months. And if their state’s taxes are owed, you are looking at one year or more.
Myth 7: Once The Plan Is In Place, Your Work Is Done
Most people think that after completing their estate planning, their work is completed. But that is where the real work starts. With your estate planning, you have nominated certain people for a certain fraction of your property.
You must observe them to see if they are the same person whom you trust with the property. If the person changes or becomes greedy with assets, you would need to modify your will.
As you can see, there are a lot of misconceptions about estate planning.
And it is undesirable that estate planning can be complex at times; understanding the truths about these myths will help you open your Eyedea and see estate planning from a different perspective.