Estate Planning Myth #1 – I Don’t Need an Estate Plan Because my Spouse Will Inherit Everything.
A common belief is "if you are married and don’t have a will or a trust, your spouse will still inherit everything." Unfortunately, this is not always the case. The person who will inherit your estate, even if you are married, depends on many different factors, including how your property is titled, who you have named on your pay on death beneficiary designations, and the laws of the state where you live and any other state where you own property. The only way to insure your spouse will inherit everything is to sit down with an experienced estate planning attorney who will help you create an estate plan that will meet all of your goals.
Estate Planning Myth #2 – I Don’t Need an Estate Plan Because my Family Knows my Final Wishes.
You have shared your final wishes with your family, and you are confident that they will “do the right thing” after you die. Even if you are confident that your family will "do the right thing" after you die, they may not be able to accomplish your wishes without a valid will or trust. First, the title on the property will determine who inherits it (not the person you instructed your family to gift the property to). In addition, if you fail to complete or update pay on death beneficiary designations for assets such as bank accounts and life insurance policies, your family does not have any authority to tell the bank or insurance company who should inherit the proceeds. Finally, without an estate plan, the laws of the state where you live and any other state where you own property will dictate who inherits your probate estate, not your family. The only way to insure that your property will go to your intended heirs is to sit down with an experienced estate planning attorney who will help you create an estate plan that will meet all of your goals.
Estate Planning Myth #3 – I Made an Estate Plan, I'm Done.
An estate plan, drafted by an experienced estate planning attorney that meets all of your goals, will still require regular maintenance. As the years pass, laws change, people and relationships change, and your needs, goals, and concerns may change. The only way to insure that your plan will work the way you intend it to work is to pull it out of the drawer every few years and have it looked over by your estate planning attorney.
Final Thoughts About Estate Planning Myths
These are only three common estate planning myths. Unfortunately, there are many more. The only way to separate myth from reality, and get a plan that will work for you and your family, is to retain the services of an experienced estate planning attorney. Call us today at (805) 669-7009 or email us at tim@santabarbaraestateplanner.com.
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