When you think about the future, considering your own mortality might be uncomfortable. However, estate planning is essential for ensuring the distribution of your assets according to your wishes upon your death.
In Virginia, there are many misconceptions about estate planning that could deter you from creating your own. Learn more and debunk some of these myths.
Myth 1: Estate planning is for the wealthy
The most common myth is that estate planning only benefits the rich. The truth is that everyone, regardless of income or net worth, can benefit from estate planning. It includes designating beneficiaries for your belongings, no matter how modest they may be.
Myth 2: You are too young for estate planning
Another common myth is that estate planning is only for older individuals. This notion could not be more incorrect. Unexpected life events happen at all ages, and having an estate plan in place ensures your wishes get carried out, no matter when that happens.
Myth 3: A will covers all your assets
Many people believe that a simple will suffices for estate planning. While a will is a significant component, it does not cover all your assets. Items such as life insurance or retirement accounts pass directly to the named beneficiaries, bypassing the will.
Myth 4: Once you create an estate plan, you do not need to review it
Creating an estate plan is not a one-time task. Changes in your life, such as marriage, divorce, births or deaths, may require you to update your estate plan. It is a good practice to review your plan regularly to ensure it still aligns with your wishes.
Myth 5: Estate planning only covers your death
Estate planning does not solely focus on what happens when you die. It also encompasses situations where you become incapacitated and unable to make your own decisions. Components such as a power of attorney and advance medical directives allow you to designate someone to make financial and medical decisions on your behalf if you cannot do so yourself.
Estate planning cares for your loved ones and carries out your wishes regardless of what life throws at you. So, start your estate planning today, and prepare for the future.
