Common Myths to Ignore Regarding Your Estate Plan
According to a poll taken in 2021, 56% of respondents said that estate planning was something that should be taken seriously. However, that same poll found that, at the time, only 35% of Americans actually had some sort of written plan in place. Let’s take a closer look at why people tend to procrastinate when it comes to drawing up plan documents.
Estate Planning Is Too Expensive
One of the more popular excuses for not having an estate plan is that creating one costs too much money. However, the truth is that the overall cost of a will, trust or other documents depends largely on your objectives and how much help you need to create them.
You will likely incur a greater expense if you have an estate that includes a business, real estate holdings or other valuable or illiquid assets. It will also cost more to execute a trust compared to a simple will. Talking to a New Jersey estate planning lawyer can give you a better idea of what your needs might be and how much it might cost to create your preferred plan.
There Is Nothing To Protect or Distribute
You may believe that you don’t need an estate plan because you don’t have a lot of assets to distribute to your kids, grandchildren or other beneficiaries. While this may be true in your case, it’s also possible that you have many items that need to be covered by a will, trust or beneficiary designation.
Let’s say that you have $1,000 in the bank when you pass away. Unless you account for it in your estate plan, it could be months before a friend, charity or family member can make use of it. Furthermore, if you were to die without a will or trust, the money would be allocated per state intestacy laws.
Therefore, your money could go to an estranged family sibling or child instead of the pet rescue down the street that you think could benefit most from the money. Having an estate plan in place could also reduce the likelihood of a court battle, which could extend probate or create tension between family members.
Even if you don’t own anything that has significant financial value, you may own items that have sentimental value to friends or family members. Ultimately, you’ll want to create protocols for determining how those items are allocated after your death.
Finally, an estate plan is about more than just your assets. It can also be used to appoint someone to manage your affairs if you can’t do so on your own. You can also appoint a guardian for a minor child in your will, which is important if the child’s other parent isn’t capable of being a caregiver.
I’ve Made My Plans Known To Others
You may think that simply telling your kids or grandkids about your estate plan is enough to ensure that your final wishes are respected. However, the truth is that you will need to create a will, trust or other plan documents to clearly articulate what those wishes are. Otherwise, you will be seen as having died intestate and at the whims of state probate laws.
It’s also important that any documents you create are structured following state law. This means that you’ll need to have witnesses sign documents and take other steps to ensure that they will stand up to a legal challenge.
Of course, it is a good idea to have estate planning conversations with your family during your lifetime. Doing so can make it easier for an executor or a trustee to find important information or for family members to work through any negative feelings they have about your plan.
If you are looking for a New Jersey estate planning lawyer, don’t hesitate to contact the Knee Law Firm in Paramus. You can get in touch with us by dialing 201-996-1200.