You may not want to think much about estate planning, but it is a crucial subject to consider. Setting up an estate plan guarantees the ones you love will get what they need when you pass away. However, there are a lot of misconceptions about estate planning out there that may make things more difficult for your beneficiaries if you believe them.
Making sure your estate plan is sufficient and airtight is imperative to passing on your assets to your heirs as painlessly as possible. Here are some popular myths about estate planning you should not buy into.
1. A will is enough
If you have a small and extremely simple estate, a will may handle most of your assets. However, virtually all estate plans should include more than just a will. Remember to consider retirement accounts, life insurance policies, powers of attorney, advance health care directives and trusts.
2. Updating is unnecessary
You may assume once you have an estate plan in place you do not need to make any changes. Never set it and forget it. If you fail to regularly review your estate planning documents, you may neglect to include certain assets. You should certainly take another look at your planning when any significant life changes take place, such as a divorce or family death.
3. Probate is horrible
A lot of people think probate is costly and lengthy. On the contrary, it is a relatively simple process. You do not necessarily need to avoid probate at all costs. You may spend more trying to avoid it than it would end up costing. However, there are circumstances in which an alternative may cost you less. You should talk to an attorney about what your best course of action is when it comes to probate.
As long as you avoid these misconceptions and work with an estate planning lawyer, you can breathe a sigh of relief that your loved ones will get what they deserve.