Proper wealth planning, be it estate or business shares, is an imperative need. Avoiding that might cause major disputes in between you and your partner. Now, knowing the right laws associated with estate planning is a mandatory thing, whenever you’re willing to create your estate plan or will. Acquiring adequate knowledge about the estate planning laws is quite difficult and thus, it’s always advised to hire an estate planning attorney. Estate planning attorneys have years of experience in the particular domain and they’re well equipped with the laws. They know how to effectively utilize these laws in your favor, and they can surprise you with their skills.
People come from different societies and they have different perception towards things. Each one of them has different thoughts regarding estate planning and the need for estate planning. So, taking the time out, today, on the blog we’ll share the common myths that people have regarding estate planning.
- I’m rich so I don’t need an estate planning: People believe that estate planning is not for those who ain’t rich, and this isn’t true. You ain’t gotta have money to get a good estate plan made. An estate plan, irrespective of your financial status, provides unlimited benefits. Estate planning includes certain other things like getting a provision made for the caring of a minor or disabled child, caring for a surviving spouse, transferring your business or property to someone after you, and other transfers of assets.
- I don’t need an estate plan because I’m too young to do so: Life is unpredictable, and so is every next day. You will never know what awaits you in the next step that you take. Death can be waiting for you, preying on you from behind the bush, looking for the right moment to make you incapacitated to do anything. So, even if you’re so young and don’t have any wealth, you must possess a power of attorney or a health care directive to take your place when you get incapable of doing anything.
- Property out of probate saves money on federal taxes: This is a general misconception of people, and this is completely wrong. Federal taxes and probates are governed by different state laws and departments. Federal taxes are a part of internal revenue code and are set forth there. Whereas, the probate and probate avoidance are a part of state law. The fact that estate planning can help in reducing taxes is true but there’s no correlation between the two things- federal taxes and probate avoidance.
- If I have a will, I don’t need a living trust: The major difference between a will and a living trust is: a will is effective only after your death. However, a living trust is effective even when you’re alive but you get incapacitated. People who have accumulated a huge wealth over the course of time, they are advised to get both: a will and a living trust made in order to avoid prospect tormenting situations.
Bottom line: Whether to get a living trust or will make is entirely your decision. But we advise you to take the decision keeping your present and future, both in mind.