Common Legal Myths About Estate Planning
It is vital for all American adults to take a more proactive approach to their legacy. All adults need to start estate planning well in advance when they are still in a good state of mind to do so. You need to protect your assets and finances so you can pass down important items to your children and other loved ones.
There are numerous myths that persist around estate planning. Many of these myths cause people to make errors in their paperwork. It is paramount to debunk these myths so that Colorado residents can become better prepared for their golden years.
Myth: You only need to create an estate plan when you are older
A lot of people assume they only need to start thinking about wills and trusts when they retire. However, you should write up these documents well before then. You should first create an estate plan after a major life event, such as the birth of a child or opening a retirement account for the first time. You can always update your documents later if circumstances change.
Myth: Only the incredibly rich need to worry about estate plans
You may falsely assume only the wealthy need to create an estate plan to avoid paying too much in taxes. The truth is that everyone could benefit from an effective plan. You likely own more assets than you think you do. You need to consider the overall value of your house and each of your vehicles. All of this comes into consideration when dolling out your estate.
Myth: You only need a will
When most people think of estate planning documents, they only think of a will. A thorough estate plan may actually consist of several different documents. You need health care directives and trusts to ensure all of your assets go where they need to go.