Estate planning remains one of the frequently misinterpreted term throughout the world, although it is being widely encouraged and practiced in some part of the world although it remains foreign to most people due to these misconceptions. This article aims to clear these misconceptions and shed more light on the importance and benefits of estate planning.
Common Estate Planning Misconception
The following misconceptions can greatly affect estate owners who have no idea of how important and beneficial estate planning can be for them and their loved ones.
- An estate plan covers only property and belngngs: An estate plan isn’t just about assets or property. It also deals with personal matters. This a misconception that hinders utmost benefits of having an estate plan.
In the event of incapacity, an estate plan includes directives in dcuments such as medical power of attorney otherwise known as health proxy, which enables a trusted appointee makes decision when you are incapable of doing such. In addition, if you have young children, an estate plan enables you to appoint a guardian for their care and managing of their inheritance following your death.
- Estate planning is for the rich: At some point in our lives, this must have popped up in our mind as to why a middle-class individual should plan an estate? or how big this individual’s house is and what not? These thoughts are driven by the fact you don’t know what an estate is. An estate is anything of value you possess and would want someone to be in possession of someday, from jewelries, to cars and houses etc. These items altogether make up your estate, and certainly anyone reading has something of value they want preserved and inherited someday. Everyone, from an average earner to a multimillionaire needs estate planning as it is a life planning process, that gets the best of present times to secure the future
- It is too early to plan my estate: estate plannng can never be to early as far as you are above 18 years of age but, it can be too late and no one can make an estate plan on your behalf after you die. The best time to start planning your estate is now, hire an estate planning attorney to guide you every step of the way.
- A will covers all of my wishes and it is cheaper to make on my own: A will appears to be a relatively easy to make document, that most times people try to cut cost by leaving out professional consultation of an Estate planning attorney. This doesn’t spell good if you are looking to get quality estate plan, as you are likely to spend more in the long run.
A will is most likely to undergo probate (a legal process to verify authenticity of a will) this takes a lot of time and there are laws you might have missed out drafting your will by yourself, this might risk its authenticity and invariably prevent your last wishes from being honored.
- Final documents complete my estate planning process: It’s never until it is over, and having established a plan in place is never enough. You need to always review your plan over time as estate laws are ever dynamic and you need to be in sync so as not to be left in the dust and have to forfeit your progress thus far.
Laws, circumstances and individual changes might occur over time. Thanks to the flexibility of estate planning, you can easily update your plan periodically with your estate planning attorney. As your life changes so should your estate plan adjust to effectively accomodate these changes.
- I am too young to plan my estate: research shows that a great percentage f persons likened esate plannng to a plan for old peple before they die, whle some see it as a post retirement plan which is wrong. From the legal age that marks adulthood (18) you are entitled to have a will of your own. Quite painfully we are all aware that life can change on a dime and there is no guarantee for immortality, but, isn’t that what makes ‘life’, life. Howbeit, the best we can do for ourselves and loved ones is to engage in quality estate planning, as soon and as early as we can.
