Although you might not realize it, you need an estate plan. This plan covers everything from your long-term care to what you want to happen after you die.
Unfortunately, there are a lot of myths that surround this process.
Only the ultra-rich need an estate plan
You probably have more assets than you realize. If you do not do something with them, you could wind up just giving everything to the state.
Estate planning is only for the elderly
Although estate planning comes into play when you are elderly, it also helps you if you become incapacitated. A living will and power of attorney both help you if you cannot make decisions for yourself.
Assets are always clearly defined
Unfortunately, some assets are murky, particularly if you and your significant other are not married. It is important to make sure that your partner will inherit if something happens to you. This means you need specific language in your will or trust that assures that the property will change hands correctly.
Not realizing there are taxes
Imagine those that you love dealing with your loss and having to deal with the tax implications of your estate as well. You can help them avoid this by carefully creating your estate plan.
Missing one of the four parts of estate planning
There are four basic parts to any well-planned estate. These parts are the trust, living will, financial and healthcare, and power of attorney. Each of the four parts is essential to making sure that your estate transfers hands smoothly.
Many people fall prey to these estate planning myths, but you don’t have to with a bit of foresight.