Common Misconceptions People Have About Estate Planning
The topic of estate planning is still relatively new to most people. In fact, when I shared that I am an estate planner, a good number of them thought I help people with planning of buying real estate. However, this is far from what an estate planner do. Real estate can be part of an estate plan, but seldom does it stops just there.
To date, people still have misconceptions when it comes to estate planning. Here are 10 common misconceptions that I have encountered in the course of my practice.
Estate Planning is Only for the Wealthy
Many believe that only the very wealthy need an estate plan, but everyone can benefit from having one to ensure their wishes are followed.
Estate Planning is Only About Distribution of Assets
Estate planning also includes setting up advanced medical directives, advance care planning, appointing guardianship for minors, and appointing lasting power of attorney.
A Will Covers Everything
A will is a crucial part of an estate plan but doesn’t cover all aspects, such as avoiding probate or managing assets when one becomes mentally incapacitated. CPF monies also cannot be included in a Will.
It’s a One-Time Task
Estate planning should be revisited regularly and updated to reflect changes in life circumstances, laws, and personal wishes. When appointed executors or beneficiaries predeceased, it’s also a good time to review one’s Estate Plan. Other changes in life may also require one to review their estate plan.
Check out my article on when to review your estate plan here.
It’s Too Complicated and Expensive
While it can seem complex, estate planning can be straightforward and affordable, especially with professional guidance. It can get even more expensive when legal suits arise upon the Testator’s demise.
My Family Knows My Wishes
Without a legal document, your family’s understanding of your wishes might not be sufficient or adequate to avoid disputes or legal complications.
I’m Too Young to Need an Estate Plan
Unexpected events can happen at any age, so it’s wise to be prepared regardless of your current stage in life.
Estate Plans are Set in Stone
Estate plans are flexible and can be adjusted as your life circumstances and laws change.
A Simple Will is Enough
Depending on your situation, you might also need trusts, lasting powers of attorney, advanced medical directives and/or advanced care plan. Check out my article about the potential issues with a simple Will here.
It Can Wait Until Later
Procrastinating on estate planning can leave your family unprepared and your wishes unprotected in case of sudden illness or death.
Concluding Remark
Someone once shared that our lives is short, and there are many things that we should do and not wait. Estate planning is one of them. Procrastinating doing an estate plan can have dire consequences for your loved ones. This is especially more so if you have loved ones whom you want to take care of.
Hopefully these pointers can help with demystifying the misconceptions that people have about estate planning. Do seek advice from a Professional instead of relying on free advice. Your loved ones deserve much more than just your assets.
