The process of estate planning helps you organize your life and assets and gives you peace of mind about the future.  However, some people choose to believe myths that hold them back from achieving these significant goals. The truths below destroy common myths, and they’ll help you understand the benefits of creating an estate plan.

What Are Some Misconceptions About Estate Planning?

1. Only Wealthy People Need Estate Plans

No matter what amount of wealth you possess, if you have minor children, you need a will, the cornerstone of most estate plans. A will is your only method of designating a legal guardian for your children if you pass away before they reach adulthood.

To provide for your children’s financial support and leave them any property you own, you can establish a trust that takes effect when you pass away. Another option is to place assets in a trust that is effective while you are living. Depending on how the trust is structured, it can provide tax benefits and protect assets from creditors.    

2. Creating an Estate Plan Is a One-Time Activity

Estate plans are subject to review and change. More than a will and trust, your plan may include life, health, and disability insurance policies, financial investments, and pension and retirement accounts. Typical modifications include adding or removing beneficiaries when events such as marriage, divorce, deaths, births, or adoptions occur.

Power of attorney forms, living wills, and health care directives are important components of effective planning. You may choose to alter these legal documents to expand or reduce authority you give an agent, designate new or substitute agents, or modify instructions in a health care directive. 

3.  Planning is Complicated

Establishing a plan and drawing up a will, trusts, and other legal documents for handling personal and business affairs is a step-by-step process. By working with an experienced attorney, you get the legal advice and professional drafting needed to accomplish your goals and complete the process successfully.  

For help with estate planning in the Hartford County, CT, area, contact Greene Law, PC in Farmington. These experienced attorneys are ready to provide the legal advice and assistance you need to prepare or change your legal documents. Visit the law firm online to meet the legal team and call (860) 676-1336 for a consultation.