Estate planning can seem overwhelming without proper guidance, which is why you should hire an expert attorney to handle your estate plan. A lawyer will speak with you and establish a plan, helping you to avoid misconceptions and mistakes along the way. However, before visiting an attorney, it’s worthwhile to have a basic understanding of common myths. Here are a few to be aware of.  

Common Estate Planning Myths

1. It’s Better to Add a Name to a Property Than to Establish a Trust

A single, aging parent who is looking to avoid probate without using a living trust will often add the names of their children to the title of their property. Their goal is to reduce taxes. However, this can create risks, as adding another individual to the property title will open it up to their creditors. They will have a new asset in their name that did not exist before, and they may have trouble taking out loans or filing for bankruptcy. Instead, use an attorney to establish a trust. They can help you find other ways to save on taxes.

2. Creating a Will Helps You Avoid Probate

While time-consuming and inefficient, the probate process cannot be avoided by creating a will. A will can direct the probate process, but it will still follow the jurisdiction of the courts. Establishing a trust through estate planning, however, does avoid the process since probate only governs the assets of the individual and not the assets in a trust.

3. A Living Will Is the Same as a Living Trust

The terminology surrounding estate planning can be confusing, which is why you should always consult with a lawyer. For example, it is not uncommon for people to mistake a living will for a living trust. A living will is a healthcare document stating what your preferences are when it comes to end-of-life decisions. A living trust, on the other hand, is a document that holds the legal title to your property during your life and after you pass away.

Your family’s financial future is important. Properly planning now to make sure that they are taken care of later can make all the difference. There are many misconceptions when it comes to estate planning, but by hiring an expert attorney, you can be sure that you’re taken care of. For over 40 years, Stuart R. Norman Jr. has helped New London County, Connecticut, with their estate planning needs. He is committed to offering personalized, expert services for all of his clients. Call (860) 376-0069 today or visit his website to learn more about his legal services.