Estate planning is one of the most important things you can do during your lifetime, but many people hold common misconceptions as fact. These harmful myths prevent people from crafting a well-thought estate plan, if they create one at all. The truth is that many Arkansas residents don’t ever create an estate plan at all, leaving their loved ones to deal with the aftermath. Today, we’re debunking some of the most common estate planning myths to help people in Arkansas and the rest of the country get more comfortable with the estate planning process and learn the reality of protecting their legacies.
Myth: Estate Planning is for the Wealthy
Reality: Many people mistakenly believe that they don’t have enough assets to necessitate an estate plan, but everyone can benefit from creating a plan. No matter how large or small your assets are, having a plan can protect your loved ones by laying out exactly what should be done with your property, vehicles, accounts, and belongings.
Myth: Estate Planning is for the Elderly
Reality: “But I’m too young to have an estate plan!” There’s no counting how many times estate planning attorneys have heard this sentence, but it couldn’t be further from the truth. It’s never too early to create an estate plan, and now is the best time to start.
Myth: You Only Need a Will for Your Estate Plan
Reality: Wills and estate plans do go hand in hand, but a will alone isn’t enough for most. Depending on your circumstances, you might choose from different estate planning methods such as a power of attorney, trusts, and medical directives to cover all your bases.
Myth: Planning Your Estate is a One-Time Event
Reality: If you think the estate plan you created a decade ago is enough, think again. While the plan may be valid, there are several life events that warrant an update to your estate plan: marriage, divorce, children, a new job, and gaining or losing significant assets all call for an update.
Myth: Taxes Will Deplete Your Estate’s Value
Reality: A common worry among estate planners is that taxes will take everything, leaving nothing for their beneficiaries. However, Arkansas does not impose an estate or inheritance tax. Depending on your total assets, you may be subject to a federal tax, but taxes don’t affect most.
Myth: An Estate Plan is Only Valid After Death
Reality: Although your estate plan will be helpful for your loved ones after your death, it’s also important to consider what could happen if you become incapacitated or unable to make your own decisions. Ask yourself these questions: Who will care for my minor children? How do I want my healthcare decisions handled? These questions and more can be answered within your estate plan.
Myth: Do-It-Yourself Estate Planning Services are Enough
Reality: Searching for free estate planning will yield countless results, but you get what you pay for. One of the biggest problems with DIY estate planning is the one-size-fits-all approach, when the reality is that everyone’s estate plan might look a bit different. You also run the risk of leaving gaps in your assets, which could leave your estate subject to probate.
Whether it’s your first time thinking about your estate plan or you’re trying to remember what you put in your original will, you could benefit from discussing your needs with an estate planning attorney. At L. Jennings Law, we provide knowledgeable and comprehensive estate planning service for people across Arkansas. Contact us today to discuss your estate plan with L. Jennings Law and learn more about creating a plan that’s tailored to your needs.