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3 common myths about estate planning

On Behalf of | Jun 6, 2024 | Estate Planning |

Estate planning could seem confusing and intimidating at first. Many people avoid it because of common myths that create fear and hesitation.

Knowing the truth about estate planning can help people in multiple ways.

Myth 1: Only the wealthy need estate planning

Many people believe that only the wealthy need estate planning. However, this is not true. Estate planning is important for everyone, no matter their financial status.

Estate planning includes making decisions about who will receive personal belongings, bank accounts and even digital assets like social media accounts. It also involves naming guardians for minor children and setting up healthcare directives. Everyone has something valuable to them, and estate planning ensures other people respect their wishes.

Myth 2: Estate planning is only about death

Another common myth is that estate planning is only about what happens after death. While it does cover this aspect, estate planning also addresses many other important areas. For example, it includes planning for potential incapacity due to illness or injury.

A good estate plan will include a power of attorney, which appoints someone to make financial and medical decisions if a person cannot do so. This ensures that individuals will handle their affairs according to their wishes, even if they are still alive but unable to communicate or make decisions.

Myth 3: Estate plans do not need updates

Some people think that once they create an estate plan, they never need to look at it again. However, all estate planning documents need regular updates to reflect any changes in life circumstances. Major life events such as marriage, the birth of a child or the death of a beneficiary can all impact an estate plan. Additionally, laws and regulations may change, so periodic reviews help ensure the plan remains legally valid.

By debunking these common myths, people can better understand the importance of having a comprehensive estate plan. Realizing these truths may lead to more informed and confident decisions in the future.