What are the common misconceptions about estate planning? Many individuals are still determining what estate planning comprises, even though the concept is relatively simple. This confusion has brought about some common misconceptions about estate planning.
Regrettably, these misconceptions can occasionally keep people from creating a strategy that will enable them to safeguard their assets, including money and property, in the case of their incapacity or death. In this article, we will tackle the eight common misconceptions about estate planning.
8 Common Misconceptions About Estate Planning
Estate planning is an essential financial and legal process with its fair share of misconceptions. Let’s debunk some common myths and clarify what estate planning is all about.
Estate Planning Is Only For The Wealthy
Not just the very wealthy should use estate planning; people of every financial status and age should also. You ought to have an estate plan established regardless of your marital status, the amount or worth of your estate, or both. It’s crucial if you have loved ones who depend on you for support and you own property.
Estate planning includes lifetime planning in addition to death preparation. It can name a guardian for younger children, provide for the future financial needs of your family, plan for disabilities, and much more.
There is more to your estate plan than just money assets. It includes materials and sentimental belongings like jewelry and furniture that can be contested in the event of an unexpected death. Throughout your life, your estate is likely to increase, and that increase could be liable to estate taxes and inheritance. By strategizing your estate plan with the assistance of an estate planning attorney, you can prevent these results.
If I Pass Away Without A Will My Significant Other Or Spouse Will Inherit My Assets Immediately
Nevada’s intestacy laws will determine how your estate is divided if you die without a will. If you don’t have a will, these laws will decide who will inherit your estate. The probate court is where this procedure is conducted. Probate can be exceedingly costly and time-consuming, particularly if you don’t have a will. Furthermore, the intestacy laws of the state may exclude certain individuals from receiving your belongings, even if that was what you intended.
Except in cases of tenancy in common, jointly owned property typically transfers to one of its owners without the necessity for probate; however, other assets might not be handled similarly. Additionally, you can only transfer assets to someone other than your spouse if you jointly own a small business or property.
A Last Will And Testament Is All That I Need
The Last Will and Testament represent a fine place to start, but you should go beyond that. You can include a Personal Representative in your Will to oversee the administration of your estate and the equitable distribution of assets throughout the probate process. It’s crucial to remember that your Will will not dictate how all of your wealth will be allocated. For example, assets such as retirement accounts and life insurance usually have designated beneficiaries, which allows them to avoid probate court as well as your will.
But your estate plan should also include other vital documents besides your Will. Several of these documents include:
- Financial and Medical Power of Attorney
- Revocable Living Trust
- Living Will
- A buy-sell agreement between business owners
- Instructions for protecting digital assets
Once the estate plan has taken place, you must make sure that all of your goals are reflected in it and update it regularly. It is particularly crucial if your marital status, family, or health change in any way. Every year, you must also review the beneficiary designations of the financial accounts, life insurance, and retirement accounts.
A Will Avoids Probate
Your assets still need to get through probate court, regardless of whether you have a will. You might need to open probate across multiple states if you possess real estate in multiple states. Essentially, a will is a statement you write to the probate court outlining your preferences. Nevada’s intestacy laws will allocate your assets if you do not make a will; this does not prevent probate. It takes at least six months for your assets to be distributed towards your loved ones during probate. On the other hand, if the Will is contested or your estate is rather intricate, it may take far longer.
Having a Living Trust Keeps My Assets Protected From Creditors
One of the many benefits of creating a Revocable Living Trust for the creators is that it spares them from the probate court. The only thing a trust can’t do, though, is shield your possessions from creditors. It is so long as the creator is alive and retains ownership of the assets they contribute to the Trust. You’ll need an Irrevocable Trust to protect your belongings from creditors.
A Life Insurance Payout Doesn’t Trigger Estate Taxes
For taxation reasons, your estate’s value includes most of your assets, particularly life insurance.
I’m Too Young for Estate Planning
It’s never too early to start thinking about your estate. Planning should start as soon as you become eighteen years old. Although you never know when you’ll need an estate plan, putting it off could have disastrous consequences.
An Estate Plan Is Only Important When You Die
Estate planning entails more than just planning for your demise; it also includes planning for all of your life. Planning for future disability, legacy planning, and charitable giving are all included in a well-designed estate plan. Sadly, in the absence of an estate plan or advanced directive, a permanent handicap can ruin families.
Estate planning may help with a few things:
- Make sure your medical needs are honored by appointing a medical power of attorney.
- Assign someone to act as your financial power of attorney so they may handle financial decisions.
- Appoint a successor trustee who will manage your estate’s management.
- Designate guardians for young children if their parents die.
Estate planning is something that everyone should do, not just the exceedingly wealthy. Some of the most significant legal documents you will draft in your lifetime are those related to estate planning. To ensure that your plan secures your family, finances, and property as planned, you must work with an expert professional. Set up a free appointment with a knowledgeable estate planning lawyer in Las Vegas today.
Reputable & Experienced Las Vegas Estate Planning Lawyers
Having a plan to safeguard your assets, family, and healthcare decisions is essential, regardless of your age or income. Creating an estate plan entails considering a wide range of other areas of your life in addition to the distribution of assets. To assist you in creating, reviewing, and updating your estate plan, contact an experienced estate planning lawyer.
We at The Law Office of Roger A. Giuliani, P.C. take great pride in offering our clients excellent legal representation, and we have assisted many clients with their estate planning needs. Whether we’re drafting a will from scratch, examining pre-existing estate planning documents, or making changes to them per your wishes, we ensure the process is done carefully and in line with all applicable laws. You and those you love can have peace of mind knowing that our law firm is protecting your estate.
For more information and questions, call us at (702) 388-9800.