When you hear the term “estate plan,” you may think it’s only for older people or those with a high net worth. However, you may not realize that this couldn’t be further from the truth.
The truth is, there are a lot of misconceptions floating around about estate planning. Learning the truth is the best way to help you understand why making an estate plan is so important and what benefits it offers.
You don’t need an estate plan if you are younger
You may believe that you only need an estate plan if you are ready to retire. While it is more likely that you will experience a terminal health issue when you get older, a person can die suddenly at any age.
If you have anyone who depends on you and you own assets, you will likely want to have an estate plan to protect them and protect your legacy.
You only need a trust if you have a high net worth
Many people associate trusts with wealthy and privileged people. While trusts are helpful for these situations, they aren’t just for those who have millions in cash and assets.
Establishing a trust can be beneficial; a trust may allow you to avoid probate or provide for someone with special needs. In addition, a trust might help simplify more complex family situations or assure your wishes, like charitable giving, are protected.
Sometimes having a trust is also beneficial if you need government insurance benefits as you age or are concerned that taxes or creditors will deplete your estate.
Establishing an estate plan is the smart thing to do
No matter your age, creating an estate plan is the intelligent and responsible thing to do. A well-drafted estate plan can help protect the people you care about and reduce cases of conflict after you pass away.