Believing estate planning myths can lead to unpreparedness for the future.
False beliefs and misconceptions can be damaging.
This is especially true for estate planning.
When Americans have inaccurate information about this area of the law, they may be complacent and fail to properly protect their assets and their loved ones.
The consequences can be devastating and linger for generations.
Recognizing these common estate planning myths will help you take confident actions to protect everyone you love and everything you have.
Estate planning myths can destroy families and property.
Believing you must be rich to require the legal protections of estate planning is detrimental to Americans.
Even if you do not have significant assets, you still need an estate plan.
Estate planning does not only focus on distributing wealth.
This legal planning also involves selecting individuals to make financial and medical decisions on your behalf if you become incapacitated and naming guardians for any minor children.
Without a plan, state law decides who steps in and who inherits, let alone who will rear minor children to adulthood.
And those outcomes may not reflect what you would have wanted.
This myth is too reductionistic.
While a last will and testament is beneficial for many assets, it does not control assets with beneficiary designations, such as life insurance or retirement accounts.
Additionally, a last will and testament only has power after you have died.
It cannot provide any support in the event of incapacity.
A comprehensive estate plan will include advance health care directives (including a health care treatment directive and a durable power of attorney for health care decisions), a general durable power of attorney for financial matters, and possibly trusts to complement the last will and testament.
Even amiable families can suffer rifts in the absence of clear estate plan instructions.
Because grief and stress tend to heighten reactivity and reduce rationality, simple misunderstandings can explode.
Conflict can arise when intentions and roles are not defined.
To dispel this myth, you should prioritize clear estate planning documents and communicate your wishes to your loved ones so they can focus on mourning together.
As Heraclitus, an ancient Greek philosopher, observed: "The only constant in life is change."
Accordingly, it only makes sense that your estate plan should change, too.
New children, marriages, divorces, financial changes, and health issues can all impact the structure of your plan.
An outdated plan and a non-existent plan can be equally detrimental.
Yikes!
The key to counteracting this myth is to regularly review and update your fiduciaries, beneficiary designations, and distribution instructions to ensure they continue to align with your current wishes and goals.
Inaction and a false sense of security are common consequences of estate planning myths.
By working with an experienced estate planning attorney, you can set yourself and your loved ones up for greater security.
If you live in Kansas or Missouri, you can request a consultation with our law office in Overland Park, Kansas, just inside the Kansas-Missouri border.
Estate planning is for everyone, not only the wealthy.
A comprehensive estate plan will address incapacity and may involve more legal instruments than a last will and testament.
Clarity can help minimize rifts among surviving loved ones.
Even after the initial creation of an estate plan, regular reviews are necessary to keep it up to date.
This post is for informational purposes only and does not provide legal advice. You should consult an attorney for advice on any specific issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: Forbes (Oct. 06, 2023) "10 Estate Planning Myths You Shouldn’t Believe"
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