Estate Planning Misconceptions – Mistakes that Cost – Part 4

MISCONCEPTION #12: I should just put my children on my accounts and deed.  No!  Only do this if you understand all the negative consequences putting your children on your accounts and deeds has!  Their creditors, predators, and judgments can reach your assets and take them away from you.  Assets you may desperately need in your retirement years.

MISCONCEPTION #13: Estate Planning costs too much.  In comparison to what?  The value of estate planning outweighs the cost in money.  Probate can easily run $3,000 to $4,000 in today’s dollars.  In the future it could cost much more.  The government could decide to bring the estate tax exemption down to low levels and cost you a fortune unless planning was done ahead of time.  What are your personal, financial, and healthcare decisions worth to you?  Do you want somebody you know and trust to be there to manage your affairs and money when the time comes?  The only way to be sure that all of this happens is to have a plan in place.  A plan that includes a Durable Power of Attorney.

MISCONCEPTION #14: I only need a Will.  A Will is only part of an overall plan. A Will only controls the assets listed in it.  A Will (in most states) does not control beneficiary designations.  If you get remarried, or you beneficiary should pass first, you may lose control of hundreds of thousands of dollars of assets!  Also, a Will must go through probate to be validated and the assets distributed. The best insurance is to have a Trust as your primary or fallback plan and as a safety net to catch those assets and distribute them as you want.

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