October 21-27 is National Estate Planning Awareness Week.
You might think estate planning is only for the wealthy or too complicated and expensive. In reality, estate planning is critical for everyone regardless of age or financial status.
Below are some common myths that are persistent about estate plans.
Myth 1: Estate Planning is Only for the Wealthy
One of the most persistent myths about estate planning is that it’s only necessary if you have significant wealth or valuable assets. Estate planning isn’t about the size of your estate; it’s about making sure that when something happens to you there is a plan that corresponds with your wishes.
Consider this: Do you have a bank account? A car? Personal belongings with sentimental value? A life insurance policy? If you answered yes to any of these, you have an estate. But even more importantly, do you have people and organizations you care about? If so, you need an estate plan.
Estate planning isn’t just about distributing assets. It’s about making important decisions. For instance:
- Who will make medical decisions on your behalf if you’re incapacitated? And, how will they make those decisions?
- Who will care for your pet?
- Who will make sure your bills get paid?
Myth 2: Estate Planning is Complicated and Expensive
Another common misconception is that estate planning is an overly complex and costly process. While it’s true that estate planning involves legal documents and careful consideration, it doesn’t have to be overwhelming or break the bank.
Surrey has a list of community partners who can help individuals create wills and health care advance directives. Call Surrey Member Services at 610-647-6404.
Myth 3: I’m Healthy and Active-I Don’t Need to Worry
You might think estate planning is something you can put off, but this is a dangerous assumption. Life is unpredictable, and having an estate plan in place is crucial regardless of your age.
Even if you’re single with no dependents, an estate plan is critical to determine who will care for you, if you cannot care for yourself. You really don’t want to leave that to a judge to decide. Your plan will ensure your wishes are respected if you become incapacitated, designate who will make medical decisions for you, and specify how you want your assets distributed. This can prevent potential conflicts among family members and ensure your assets go to the people or causes you care about most.
Myth 4: Once I Create an Estate Plan, I’m Done
Another common misconception is that estate planning is a one-time event. Your estate plan should evolve as your life changes. Major life events that might necessitate updates to your estate plan include:
- Death of a beneficiary or executor
- Significant changes in your financial situation
- Purchase or selling of a home
- Moving to a different state
It’s important to review your estate plan at least every three years. Maybe the person you initially chose as your power of attorney is no longer the best fit, perhaps you’d like to include charitable giving in your estate plan, or you’d like to add a bequest to an individual.