Thinking about your own death is not an enjoyable experience. That’s why it’s no surprise that nearly 70% of Americans do not have a Last Will & Testament or other important estate planning documents. Here are four of the most common myths that may cause you to put estate planning on the back burner and the reasons why you shouldn’t fall for them.
Myth: Estate Planning Is Just For The Wealthy
As a federal employee, you may believe you’re not wealthy enough to need an estate plan. However, the value of your assets can add up. How much equity do you have in your primary residence? What about the value of personal property like jewelry, collectibles and family heirlooms? And don’t forget about your cars and other vehicles you may have. Without providing clear instructions, there’s no guarantee your assets will be distributed according to your wishes.
“You also have to consider a scenario in which you and your spouse pass away at the same time. With a Will in place, you can include a contingency plan.”
Myth: My Spouse Will Get Everything When I Kick The Bucket
Not entirely true. When you don’t have a Will or an estate plan, the probate laws in the state where you and your family live determine how your assets are distributed upon your death. The distribution of your assets depends on whether you live in a “common law property” state or a “community property” state. Since state laws differ on how spouses share ownership of property, you need a Will and an estate plan to make your wishes clear. You also have to consider a scenario in which you and your spouse pass away at the same time. With a Will in place, you can include a contingency plan.
Myth: Should I Become Incapacitated, My Family Knows My Wishes
When there’s a medical crisis, can you really be certain your family will honor your healthcare preferences if you’re unable to make decisions for yourself? The only way to remove all doubt is to put an Advance Healthcare Directive in place. Though titles may vary from state to state, the most common types of directives are a Living Will, a Durable Power Of Attorney for Healthcare or an Advance Healthcare Directive. Remember – healthcare directives are not just for the elderly or terminally ill. Life-threatening tragedies can happen at any age.
Myth: Estate Planning Is Too Complicated & Time Consuming
It all depends on what you need to accomplish with your estate plan. Basic documents like a Will, Power-of-Attorney and Advance Healthcare Directives aren’t that complicated or time consuming at all. Consider meeting with an FRC® trained advisor who can help you get started by identifying your estate-planning goals.
