Estate Planning: What Is And Is Not True About The Process?

Proper estate planning takes time and consideration to ensure that every aspect of settling your estate is covered in your will and other legal documents. Unfortunately, myths about estate planning can complicate the process and possibly leave your affairs in shambles. To avoid this, it is important to know the difference between the myths and the facts.  

Estate Planning Is Solely for Financial Matters

Although the idea of estate planning is to ensure that your executor is able to settle your financial matters according to your wishes after your death, there is much more to it. Estate planning can give you and your family a peace of mind. It is your way of ensuring that the needs of your loved ones will be taken care of without the need to involve the court.  

Estate planning is also a chance for you to explain to your loved ones your wishes. In addition to creating a will, you can leave a letter explaining why you made the choices you did. Doing this can help avoid family conflicts and ensure your family members are satisfied with their inheritances.  

Only Older People Should Worry About Estate Planning

One of the most commonly believed misconceptions about estate planning is that a person does not have to worry about it until he or she nears retirement. As a result, some young people put off estate planning because they believe they will have the time needed to get it done when they are older.  

The reality is that estate planning should be considered as a young adult. As your family and worth grows, you need to ensure that your planning is keeping pace. For instance, part of estate planning can include selecting a guardian for your children. If you fail to plan ahead and name a guardian, the family court could be tasked with selecting one for your children.  

You Can Cut Out Anyone in Your Will

For many people, one of the perks to estate planning is the idea that they can disinherit anyone they want. In reality, there is a possibility that your state's laws might prohibit you from eliminating certain people from your list of heirs.  

For instance, if you are married and want to disinherit your spouse when you die, chances are, your state's laws will prohibit you from doing so. If you truly want to cut out your spouse from your estate, you would need to divorce him or her before you die.  

Your estate planning attorney can help dispel any other myths that could be impacting your planning.