One of the most important things people can do is make an estate plan. Estate planning is a complicated process, however, and people often misunderstand how it works.
Because of that, you may be wrongly informed about how estate plans work. Here’s what you should know:
Myth 1: You don’t need an estate plan until you’re at least 50 years of age
Truth: People can make estate plans once they become legal adults. Many people wait to make estate plans later in life when they have a larger estate. However, many people can benefit from making an estate plan early by naming powers of attorney and child guardians.
Myth 2: You can’t remove an heir from your estate plan
Truth: You may have included someone to inherit from your estate. Maybe they recently passed or there was a falling out that made you reconsider whether they inherited anything. You can disinherit heirs. However, people may try to contest an estate plan if they feel they were wrongly disinherited.
Myth 3: You need to be rich to bother with an estate plan
Truth: Many people believe that estate planning is for the rich. But, anyone with any kind of value can make an estate plan. As mentioned above, an estate plan could include a power of attorney, an agent that acts on behalf of the testator. Furthermore, the testator can include a child guardian who would take care of the testator’s children if there was an accident.
Myth 4: You can’t update an estate plan once it is made
Truth: Some people fear that they can only make one estate plan. However, an estate plan can be updated and often should be regularly. Many people update their estate plans every few years. Others have updated their estate plans after life events, such as marriage, divorce or childbirth.
If you’re wanting to make an estate plan but are not sure where to begin, it is wisest to reach out for legal help.