According to surveys, a large percentage of Americans have no estate plan. They think estate planning is for the elderly or the wealthy. The truth stands in direct contradiction to this belief. Estate planning is for everyone. By debunking common estate planning myths, you can build an effective strategy to protect you and your family. A multi-state estate planning lawyer from Stange Law Firm, PC, can help you in your estate planning process.

1: Estate Planning Is Only for the Wealthy

Estate planning becomes necessary when you possess any personal property, such as your house or automobile, have a family, carry life insurance, or are married; your estate plan matters, regardless of net worth. The truth is, the people who need an estate plan are all of us. Estate planning can start with modest means.

According to a Caring.com survey, in 2024, 32% of Americans had an estate plan, which was a 6% decrease from the previous year. In the survey, 43% said it was because of procrastination, and 40% believed they didn’t have enough assets for one.

2: Estate Planning Should Happen When You Get Older

A common misunderstanding about estate planning is that people think you can wait until later in life. The reality is you should start sooner rather than later, as unexpected things can happen. Estate planning will give you peace of mind by ensuring that your wishes are known and that the right people are taken care of.

3: A Will Will Cover Everything

The misconception about a will is that if you die without one, there is not much to worry about. Even with a will, it is not a complete estate plan. While a will typically controls the distribution of assets when you die, it does not work during incapacity or avoid probate.

Many other documents, such as beneficiary designations, trusts, and advance directives, may control a significant part of your plan. According to one survey, only 43% of adults over the age of 55 have a will.

4: Estate Planning Is a One-Time Task

When it comes to estate planning, you’re not going to sign the documents and then never have to think about them again. Life changes frequently, and you need to take those changes into account in your plan, such as:

Death and incapacity, along with the usual uncertainties in life, make it important to review your estate plan with your attorney and financial advisor frequently. If your plan is out of date when you need it most, it will cause family confusion and unintended consequences for the people you love.

5: Your Family Will Figure It Out if There Is No Plan in Place

Some people think that if something happens to them that their family will just know what to do and work it out. The problem is that if the right steps are not taken ahead of time, your intentions may not be clear, and people may have to spend a long time and a lot of money fighting over your estate.

Without an estate plan, state law generally decides who gets your assets, and it may not be in accordance with your wishes. By planning ahead of time, you can avoid stress and prevent conflict with an estate plan that clearly states your wishes.

Why These Misconceptions Matter

Misconceptions get in the way of what is important, which is protecting the people you love and ensuring your wishes are carried out. When people understand the truth about estate planning, they will make informed decisions protecting their loved ones and their wishes effectively. A successful estate plan will bring clear understanding and certainty to your loved ones.

About Stange Law Firm, PC

Our lives are filled with events and decisions that necessitate legal planning. For many, these major transitions coincide with the work we do here at Stange Law Firm. Since 2007, our multi-state family law firm has focused on helping people find the clarity they need to navigate divorce, custody, and other family law matters. We have offices in Minnesota, Colorado, Illinois, and Wisconsin, and are dedicated to offering you the legal advice and representation you need.

FAQs

Q: When Should I Start Estate Planning?

A: While there’s no perfect time to start estate planning, the sooner the better. Estate plans are typically needed when life changes in a big way. This could be because of marriage, divorce, kids, or purchasing property. When you plan ahead, you’re in control and spare your loved ones stress if something unforeseen happens.

Q: How Often Should an Estate Plan Be Updated?

A: Estate plans should be reviewed on a regular basis and after certain life events. Marriage, divorce, moving, changes in finances, and the birth of a child are all events that may impact your plan. If you haven’t had any major changes, it’s still a good idea to review your documents every few years to ensure that they still accurately reflect your wishes and are compliant with current laws.

Q: What Happens if I Die Without an Estate Plan?

A: If you die without an estate plan, state laws control the disposition of your assets. This may or may not be the way you would have chosen, and it can result in unnecessary delay, expense, and family discord. If you fail to designate in writing who will manage your estate and care for minor children, the court will have to appoint someone, creating needless confusion.

Q: Do I Need an Estate Plan if I Don’t Have Any Assets?

A: Yes. Estate planning isn’t just about money. It can also be used to name guardians for minor children, and to choose who will make medical or financial decisions for you if you become incapacitated. Even if you don’t have a lot of money or property, you can usually benefit from having basic documents prepared so that your wishes are carried out without confusion or court involvement.

Contact Stange Law Firm, PC, for Your Estate Planning Needs

Estate planning is not only for the wealthy or elderly. Anyone with assets should have an estate plan to give their family peace of mind in a time of grief. Stange Law Firm, PC, can help you formulate an estate plan that honors your wishes. Contact us today to get started.