Estate planning is a confusing concept for many people. They may think they do not need it because they are young or have very few assets. There are many myths regarding this topic, and it helps to be informed so your wishes can be carried out in the event of your death. Estate planning can protect your assets and family, so it is important that you know the estate planning facts. Here are five common myths surrounding estate planning.
Estate Planning is Only for the Rich
The current estate tax exemption is at $5.6 million, meaning only those with estates worth more than that have to pay taxes. Given this, many people think that estate planning is only for those with large estates. That would be incorrect. Estate planning can help make decisions about your health care and make sure that your assets go where intended. It protects you in the event you become incapacitated. It is a must-have for those who are going to die, which includes everyone.
Estate Planning is for Old People
Death can happen at any time. Not all of us are lucky enough to live into our 80s and beyond. It is better to create an estate plan sooner rather than later. If you are in your 20s or 30s and have assets, talk to an estate planning lawyer today.
An Estate Plan can Not be Changed
Many people fear making an estate plan because they might have second thoughts. What if they get rid of an asset or change their beneficiary? Unless you put everything in an irrevocable trust, you can make changes throughout your life. Your life will likely change over the years as you marry, divorce, have kids, or gain or lose assets.
Estate Planning is Too Expensive
Estate planning does not have to cost a lot of money. While it may be a good idea to get a lawyer if you have a significant amount of assets, if your situation is fairly simple, you can get free or low-cost forms online. To make health care decisions, you can get free forms from your hospital. Your employer may also offer legal resources.
Estate Planning is Complicated
Getting everything together may be a lengthy process, but once you have all the information you need, it may take just two meetings to set up an estate plan. Then, every few years or so, you can review your plan and make sure it is still applicable.
Contact an Estate Planning Lawyer Today
There are different kinds of trusts available, so be sure to pick one that best fits your needs. If your concerns are creditors or future health care, for example, then you want a trust that will help you accomplish these goals.
A trust can be a valuable tool for anyone of any income level. Brooklyn estate planning lawyer Theodore Alatsas ESQ can assess your situation and help you choose the right trust. He will help you avoid costly mistakes. Schedule a consultation by calling his office at (718) 233-2903.