Estate planning, while important, is something widely misunderstood by many adults. Estate planning is a crucial part of life planning, according to Forbes. The misconceptions about estate plans often lead people to procrastinate on said plans or to forego an estate plan altogether. This could be a mistake for many.
The following include three myths about estate planning.
Estate plans are for the wealthy
There is a common misconception that estate plans are only for the wealthy and those with a lot of high-value assets. If you have loved ones who depend on you, your estate plan will help to take care of them, regardless of the amount of money that you have. If you have dependents or a spouse, estate planning is crucial.
Estate plans do not need adjustments
Estate plans need regular adjustments. As your life changes, your estate plan should change also. When you have children, you need to change your estate plan to include said children. Likewise, you may want to include grandchildren or other family members. After any major life event and at regular intervals throughout your life, you should adjust your estate plan.
Estate plans are for distribution after death
While estate planning is important to what happens to your assets after you die, this is not the only purpose. Estate planning is useful in all life stages. For instance, an estate plan can help you dictate who takes care of your kids if something were to happen to you, what your wishes are if you suffer incapacitation and more. This is more than an asset distribution tool.