Estate planning can be confusing. With so many people misunderstanding a lot of facets of estate planning, there are many myths swirling around that can cause you to make costly mistakes.
Here are some of the most common myths surrounding high-asset estate planning.
1. You are too young
You never know when you will need to enact your estate plan, and if you wait too long, you could never get the chance. For example, various celebrities have died young and not left a will to handle their assets.
2. You do not have enough money
Many people believe this myth because of the emphasis financial advisors put on the state’s estate tax, which is a serious concern when you have millions of dollars. However, estate planning involves much more than just taxes. It also plans for when you become incapacitated and ensures you care for your heirs when you die.
3. You need a professional to draft the documents
You can draw many documents related to your estate plan yourself. You can get free health care directive forms from your hospital or online. You can also find websites that help you fill these forms out for a small fee. Websites can help you draft a will and power of attorney paperwork for free, and the company you work for may offer this as a benefit.
These are the most common myths you will face when undertaking your high-asset estate planning. Knowing these truths will help you make the right decisions regarding your estate. However, consulting a financial advisor is still advisable before writing your plan.