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Estate Planning Myths That Can Ruin Your Plans
For some, estate planning can be quite a confusing topic. The confusing nature of estate planning is often compounded by various estate planning myths that people hear from friends or family members who are not knowledgeable about estate planning law. Below are several of the more common estate planning myths as well as the truth behind them.
Myth: If I Have a Will, My Estate Will Avoid Probate
Conversely, all property transferred via a will is guaranteed to go through probate. Through the process of probate, a court oversees the distribution of a person’s estate and ensures the decedent’s wishes, as outlined in the will, are carried out.
Myth: A Life Insurance Payout Will Not Trigger Estate Taxes
All of the assets that you own are included in the value of your estate for estate tax purposes. This necessarily includes the amount of any life insurance policy you owned that will be paid out upon your death.
Myth: I am Too Young for Estate Planning
Individuals should put estate plans in place upon reaching the age of eighteen and continuously update the plan until death. We never know when we will need an estate plan, and delaying planning can often have disastrous consequences.
Myth: A Revocable Trust Will Protect My Assets from Creditors
A revocable trust is an estate planning tool that provides the owner with many benefits. However, it will not hide or otherwise protect assets from your creditors or liability stemming from lawsuits against you. This is because a person remains in full control of and retains full access to any assets he or she puts into a revocable trust.
Do not let these or other possible myths frustrate your estate plan. Estateplanning.com is a great resource to help you dispel the confusion around estate planning. Click here to contact an estate planning attorney near you and learn more about the probate process, revocable trusts, and other important estate planning topics.