Estate planning is a crucial aspect of financial planning, yet it’s often misunderstood. Misconceptions can lead to costly mistakes and unnecessary stress for your loved ones. Here, we debunk four common myths about estate planning to help you make informed decisions.
Myth 1: Estate Planning Is Only for the Wealthy
Reality: Estate planning is not just for the rich. Regardless of your financial status, estate planning ensures that your assets are distributed according to your wishes and that your loved ones are taken care of. It also includes important documents like wills, powers of attorney (POA), medical directives, or trusts, which can help make navigating your later years easier for you and your family, regardless of wealth.
Myth 2: I'm Too Young for Estate Planning
Reality: Estate planning is important for adults of all ages. Accidents and unexpected illnesses can happen at any time. Having a plan in place may help ensure that your wishes are honored and that your family is not left in a difficult situation. Even young adults should consider creating a basic estate plan.
Myth 3: If I Die Without a Will, the State Will Get My Assets
Reality: If you die without a will, your assets will be distributed according to state laws, not taken by the state. These laws, known as intestate succession laws, determine who inherits your property. However, this may not align with your wishes, which is why having a will is crucial.
Myth 4: Estate Planning Is Only About Distributing Assets
Reality: Estate planning is much more than just deciding who gets your assets. It includes planning for healthcare decisions, appointing guardians for minor children, and setting up trusts to manage your assets. Estate planning may help ensure that all aspects of your life and legacy are handled according to your wishes.
Estate planning is essential for everyone, regardless of age or wealth. By understanding and debunking these common myths, you can take proactive steps to protect your assets and ensure your wishes are honored. Don't wait until it's too late—start your estate planning today! We’ve contracted with Legal Karma* to offer affordable estate planning documents. Legal Karma ensures their documents align with state law when you follow all steps and instructions provided. Check out their offerings and get started!
*PSECU has contracted with Legal Karma to provide estate planning products and services to PSECU members. PSECU does not warrant any service or product offered by third parties, including Legal Karma. PSECU recommends that you consult and seek the advice of a qualified and licensed financial, tax, or legal professional if you have questions about estate planning. Legal Karma is not a law firm and are not attorneys. The use of any Legal Karma product and/or service is not intended to be a substitution for an attorney or law firm. Legal Karma does not provide legal advice or legal services. Any information provided is for informational purposes only and shall not be construed as legal advice. Your use of Legal Karma’s Site and/or Applications does not and will not create an attorney-client relationship between you and Legal Karma and does not constitute legal advice. Legal Karma's estate products and services are available nationwide.