There is a lot to know about estate planning — and misunderstandings abound. When estate planning information is misunderstood, it can lead to serious mistakes — and that can leave families unprotected during difficult times.
Here are a few common myths about estate planning that you should know to help you avoid problems:
Myth #1: It is too early to make an estate plan
Some people believe that estate planning is only necessary when they get older. However, adults can make an estate plan at any age — and every legal adult should have one. Making an estate plan early can help loved ones manage an estate if a person unexpectedly passes away. With powers of attorney in place, estate planning also helps provide security in case you are incapacitated due to sudden illness or injury.
Myth #2: You cannot change your estate plan
Once you draft your estate plan, you can make changes at any time. Many people regularly update their estate plan every three to five years. People will also change their estate plan after major life events, such as marriage or a serious medical diagnosis. However, it is important to be aware of what parts of an estate plan can be altered. For example, an irrevocable trust cannot be altered after it is drafted unless the beneficiary gives permission. That’s why some people prefer to use revocable trusts during their lifetime, which then convert to irrevocable ones after their deaths.
Myth #3: It is better to draft your own estate plan
Many websites offer free or cheap pre-made estate plans. While they may be tempting to use, these templates often have many mistakes. For example, an estate plan template may not follow state laws, which could lead to distribution issues when a testator passes away.
To learn more about estate planning and avoid major mistakes, it can help to reach out for professional legal guidance.
