Planning for the future is easy to procrastinate, but it can have significant and costly effects if the worst happens and you haven’t properly prepared.
Many people tend to think they are not at a point in their life where an estate plan matters. This is partly due to common misconceptions. Everybody that owns property or possesses anything of value needs an estate plan.
Here at Sullivan Law, we want to make sure you understand the importance of estate planning, what it can offer that a will cannot, and why estate planning looks different for each and every client. Do not let these five common misconceptions keep you from the many benefits of proper estate planning.
#1: I am too young to need an estate plan.
While you may feel invincible in the younger stages of your life, incapacity can occur at a moment’s notice and any age. Even if you already have a will, an estate plan will ensure that your wishes regarding medical care and your personal assets are handled accordingly in the event you become disabled.
An estate plan is more effective in distributing those assets to loved ones and can save significant amounts in fees, taxes, and probate costs, not to mention a great deal of stress and heartache
#2: An estate plan only plans for after death
Indeed, many elements of your estate plan will not be put into action until you pass away. But you also need to understand that an estate plan includes medical and financial powers of attorney, a living will, and sometimes a living trust. If you are suddenly unable to speak or care for yourself, these documents will safeguard your wishes for your care and your assets.
A living will clearly states what you want to happen in the event you become incapacitated and are unable to communicate your wishes. If you have no desire to ever be left on life support, this is where you communicate and document those wishes to your loved ones and medical personnel.
By choosing a living trust, you take control over who gets your assets and allow your loved ones to potentially skip the probate process, saving them time, money, and stress.
Financial and medical powers of attorney are included in estate plans to allow you to pick someone you trust to make financial and legal decisions on your behalf in the event you become incapacitated. Whoever you choose will be allowed to do things like sign legal documents for you, make healthcare decisions, and make sure your finances and bills are taken care of.
#3 Relatives automatically get everything if no will or estate plan is in place
You might be surprised to find out that assets are not automatically handed over to the next of kin. In the event you pass away before establishing a will and estate plan, your state will enact laws of intestacy to decide who gets your assets. This can be a painfully long and expensive process – easily avoided by proper estate planning.
#4 I am not wealthy enough to need an estate plan
If you own a car, have children, have life insurance, own furniture, jewelry, or anything that is considered valuable, you need an estate plan. An estate plan can be built to meet your needs, so even though your estate plan will not look like anyone else’s it is still needed and necessary. There is no minimum income or asset requirement.
#5 I do not need a lawyer at all
The internet provides a vast number of resources that can make any task seem like a feasible feat. If you try to navigate creating a will or estate plan without an attorney, be aware that certain situations could cause complicating issues and you may not catch them on your own. Meeting with a legal professional ensures that the wishes laid out in your will and estate plan play out exactly as you intend.
At Sullivan Law, we offer estate planning packages at a flat and reasonable fee. We also offer free consultations to discuss what your needs are, what you would like to do, and how that can be best accomplished. Everyone’s needs are different, and your wishes should be clearly listed and understood.
Call us at 248.917.1351 or email at asullivan@sullivanlawonline.com to schedule your free consultation today. We look forward to working with you!