What are some misunderstandings about estate planning?
September 4, 2019
Estate planning may seem rather straightforward. Your main goal is to handle all of your financial business so your family is set after your death. While this may seem accurate, it is actually quite simplified. Estate planning requires far more thought and work and may extend beyond just your finances. That is why it is important to understand the process fully and dispel any misunderstandings you may have. This will allow you to create the right estate plan in Michigan.
Forbes explains that misunderstandings about estate planning are not unusual. Many people have little or no experience with this process before they start dealing with it for their own estate. This is why there are quite a few myths floating about.
To begin with, estate planning is not only about finances. While financial needs are a large part of the process, your estate plan may also include instructions for health care or long-term care and naming guardians for your minor children or pets. It is essentially a guide to what you would like to happen with the details of your life that will live on after you die.
Another common misunderstanding is that you do not need an estate plan as a will works just fine. This may work for a small segment of the population with very limited assets, but for most people, a more comprehensive plan is important to have. A proper estate plan helps manage taxes and limit probate. It can spell out what you want should you become unable to make your own decisions or even explain your funeral plans. You cannot do all that with a will. This information is for education and is not legal advice.