Planning for your own death is not a pleasant task, but it is something that can help your family avoid confusion, arguments and stress. Sadly, there are many people that fail to appreciate the importance of this type of planning because they are ill-informed about the estate planning process. However, learning the realities behind the following two myths should help you to better appreciate the value of an estate plan and what you need to create one.
Myth: Only Rich People Need An Estate Plan
There are many people that assume an estate plan is only for the wealthy. However, this is not always the case, and even those individuals with limited assets may benefit from this legal tool. An estate is essentially a collection of your assets, possessions and property, and you do not need to be rich to be able to pool your lifelong collection of wealth into this type of plan.
In fact, one of the primary benefits of creating an estate plan is a greater ability to manage the burden that your survivors must pay on the assets you leave them and speed. Estates can use a variety of methods to distribute or offset taxes that your family members will be required to pay. For example, it is possible for this entity to be the beneficiary of a life insurance policy, and this is tax free income which can be used to offset any tax burdens that your loved one's will incur. Also, an estate is able to fully bypass the court system, and this can help avoid your loved ones' needing to spend weeks or months going through the required legal channels.
Myth: Your Attorney Will Need Minimal Input When Preparing The Estate Plan Document
In order to create an effective estate plan, you will need the services of an professional attorney, like those at Wright & Wayment, PLLC, in this area of law. There are many different ways that an estate can be organized, and the option that is best for you will largely depend on the type and amount of assets that you will be leaving behind.
As a result, you will need to provide your attorney with ample input during the process of making your estate plan. In particular, you will need to provide a copy of your complete financial records as well as an inventory list of any possessions that you are bequeathing to your survivors. Once they have been given this information, your attorney will be able to start work on the estate, and it will usually be completed in a matter of weeks. However, you may still be contacted by the attorney to answer questions about your wishes during this process.
Creating an estate plan does not have to be a daunting or confusing experience to go through. By learning the truth about some common estate planning myths, you can help remove much of the confusion and stress that comes from preparing these documents.