Creating an estate plan is an essential task that will provide guidance and comfort for the people who love you. Having an estate plan will also give you a sense of relief knowing that your assets will transfer to your heirs according to your wishes.
However, setting up these documents can seem confusing and daunting at times. Plus, there are a lot of myths and misconceptions about estate planning that may steer you in the wrong direction.
Here are some common myths about estate planning:
1. Getting advice from someone I know is enough
If you have good people in your life who care about you, they may give you some tips about how to create an estate plan. While these individuals may mean well, you cannot believe everything they say. Every situation is unique, so you cannot necessarily apply their advice to your circumstances.
2. It is too complex
One of the reasons you may delay the creation of an estate plan is because it seems like a complicated and lengthy process. However, it is actually a relatively easy task, especially when you get help from an attorney and financial adviser. Crafting a will, designating beneficiaries and setting up a power of attorney are all easy things to do when you have the right assistance.
3. Once you create a plan, you are done
Many people view estate planning as a one-and-done task. However, this is a harmful belief. If you do not revise your estate plan over the years or when major changes take place in your life, your documents may not reflect your changing wishes and situations. An outdated estate plan may cause confusion and fights over your inheritance too. Once you develop an estate plan, make sure you review it periodically”“at least once every five years.