If you’re looking into making an estate plan, you may feel that it is completely necessary. You know that your family will need it eventually and that it can help them divide assets and avoid disputes. You may assume that everyone else already has an estate plan and it is you who is behind.
But this may not actually be the case. Despite the importance of estate plans, the reality is that two-thirds of Americans do not have one. Why is this?
Myths about estate planning
The problem is often that people have bought into certain myths about estate planning. For instance, maybe they think that it is only for the very wealthy, so they do not think it applies to them. But the reality is that everyone can benefit from estate planning, even if they don’t have very many financial assets. After all, estate planning also addresses things like guardianships or future medical decisions.
Another myth people often believe is that they have decades to make an estate plan. Someone who is in their 50s may look at life expectancy and see that they have around 25 or 30 years remaining. They don’t feel any urgency, so they procrastinate making that estate plan. But the reality is that it is safer to get the plan in place early and update it periodically, just in case of an unexpected passing.
Making your estate plan
It’s important to avoid these myths and to understand the true benefits of estate planning. Be sure you know what steps to take to create your plan this year.