If you’re like most people, you probably have a basic understanding of estate planning.  However, are those perceptions based on fact or fiction?

Estate planning is the process of defining an individual’s financial, health care and personal affairs in the event of incapacity or death. It determines how one’s assets are managed and distributed, who will be made guardian of minor children, and how health care, financial and business decisions will be handled.

Estate planning can be crucial to avoiding probate and family squabbles. However, according to a 2008 FindLaw.com survey, nearly 60 percent of Americans don’t possess the most basic component of an estate plan – a will.

Now, let’s explore a few common misconceptions:

Myth: Estate planning is just for the wealthy.
Fact: Every adult needs a basic estate plan – no matter how big or small the estate. It is the only way you can ensure how your health care, guardianship and financial wishes should be honored.

Myth: If I don’t have a will, all of my assets will go to my children.
Fact: The State will decide how your assets are distributed if you don’t. In some cases, your children may receive your assets. In other cases, they won’t. Often, costly legal battles ensue when individuals fail to spell out their wishes legally. A basic estate plan will save your loved ones time, money and stress, while giving you peace of mind and control of your own estate. 

Myth: You don’t need an estate plan until you’re married or have children.
Fact: All persons 18 years or older need a basic estate plan with a will, living will, HIPAA authorization and powers of attorney. If a serious accident happens, how would you want your health care and financial decisions handled? Your wishes need to be spelled out legally to help ensure they’re honored.

Myth: I need an attorney to create an estate plan.
Fact: While attorneys are necessary in many legal manners, they are not necessary to create a basic estate plan. Our basic estate plan includes a will, living will, springing general power of attorney, durable medical power of attorney, durable mental health care power of attorney, HIPAA authorization, and funeral and burial instructions. No attorney needed, same quality plan.