Busting myths about estate planning

| Sep 29, 2020 | Estate Planning

Almost no one wants to think about planning for when they pass on. But the truth is it’s one of the most important aspects of financial planning generally. People in Florida shouldn’t be afraid to make an estate plan. In fact, it’s one of the best things they can do for themselves and their loved ones.

The biggest mistake people make

The single biggest mistake people make when it comes to estate planning is thinking that it doesn’t apply to them. Part of this is because of the name for this process. “Estate” sounds like something big and opulent. But that’s not really the case. Every adult should at least have one estate planning document, a will. This doesn’t just let people determine how their property is distributed after they die. It’s also the place where parents designate a guardian for their minor children.

Other common errors

There next biggest problem with estate planning is that people don’t revisit their documents. After writing a will, they think they’re done for good. A will usually isn’t good for decades. People may divorce, have more children, or buy more property. A will that doesn’t address every aspect of an estate may be rejected by the court if it’s challenged.

Another issue is changing laws. Over 20 or 30 years, the estate tax exemption can change. New taxes may be imposed. The law is always evolving. It’s important for people to revisit their estate plans every few years. The best way to do this is with an experienced lawyer. They will be able to see and understand any gaps in documents like wills and trusts and help their clients rectify them.