If you think estate planning does not need to be a part of your financial picture, then you should reconsider your thinking. Everyone can benefit from estate planning. There are some common misconceptions bout estate planning that need to be cleared up before proceeding.
· "Estate Planning is needed by elderly and wealthy people only."
First off, couples with children might have more important reasons to engage in estate planning than the elderly. Parents need to name a personal and financial guardian for their children in case the parents pass away. Second, there are reminders in the news every day that death does not respect age. An estate plan will ensure that your assets are properly distributed according to your wishes in the case of your death.
The wealthy misconception is also twofold. Many people are surprised at the size of their estate. You might need to be concerned with eliminating and preserving estate taxes and not realize it yet. Even if your estate is modest, you should be interested in wealth preservation at death to pass it on to the heirs of your choice.
· "A Simple Will lasts a lifetime."
Even though a will is the foundation of an estate plan, you could possibly need other tools to effectively handle your estate. Life insurance, gifts, and trusts are other components that an attorney might deem necessary to accomplish your wishes.
Factors that determine what tools are needed to handle your estate include the size of your estate, the makeup of your family, personal preferences, and tax laws. All of these factors change over time, so a will that is only a few years old could be inconsistent with your currently desired wishes for your estate
· "The State has laws to protect my estate."
Every state has testate laws designed to settle estates of those who fail to leave behind a valid will at their death. However, the laws will not generally settle an estate in a manner that is identical with the wishes of the deceased. Furthermore, this route is commonly more costly and prone to problems than situations planned during life.
· "Joint Ownership with my spouse is a practical substitute for an estate plan."
Joint ownership of certain types of property can offer spouses significant advantages. On the negative side, some joint ownership arrangements can have some serious tax consequences. The advice of an attorney is needed to determine what is right for you.
· "Estate Planning is too expensive."
Although, you should use an estate-planning attorney to write your will, writing a will can be as simple as using a form from a business supply store or from the internet. Using an attorney should assure you that your will encompasses all of your wishes. The cost will depend on the complexity of your estate and should not be a roadblock. Cost varies between a few hundred dollars to several thousand for complex estates. Remember, money spent now could save your family a lot of money and problems when you die.
Debbie Wilburn is County Agent/Family and Consumer Science Agent with the Hall (770)535-8290 and the Forsyth (770)887-2418 County Extension Service.
Tuesday
August 5th, 2025
12:30AM
