There are several misconceptions about estate planning, and those who are not familiar with it should take a moment to read these five things you should know regarding the process.
1. Estate planning is more than just creating a will.
While a will is an important component of an estate plan, there is more involved. There should also, at the very least, be legal documents in place to handle any incapacitation or even a medical emergency later in life.
2. Estate planning is not just for senior citizens.
Younger adults should also have at least a will and a durable power of attorney in place. For parents with minor children, a more comprehensive estate plan may be necessary to handle the needs of children. As life changes occur, estate plans should be reviewed and updated accordingly.
3. An estate plan does more than distribute your property when you die.
Estate planning has become more comprehensive over the years, and can include legal documents and contingency plans to manage both your personal and financial affairs later in life. It can also include tools that allow property to avoid the time and expense of probate.
4. Estate planning is not just for the wealthy.
While larger estates often need more complex and extensive estate plans, more modest estates also benefit from estate planning.
5. Estate planning should be a coordinated, ‘holistic’ approach.
Estate planning is not just a collection of legal documents, it should be a coordinated approach to achieve your goals and meet your needs later in life and help ease the burden of your passing on loved ones.
Working with an estate planning lawyer helps you ensure that not only are your estate planning documents legal and valid, but beneficial to you and your family as well.
