Those who have yet to start the estate planning process may begin by creating a will. This document allows you to name beneficiaries for your assets, as well as identify a legal guardian for any minor children you have.
When it comes to creating a will, there are several myths that can mislead individuals and prevent them from making informed decisions about their estates. It is important to debunk these misconceptions to ensure that everyone understands why they need a well-prepared will.
Only the wealthy need wills
Only 33% of Americans have created a will, states CNBC, because many believe that wills are only necessary for the wealthy. In reality, a will is necessary for anyone who wants to have a say in how their assets get distributed after their passing. Whether you have significant wealth or modest possessions, a will allows you to specify who inherits what, providing clarity and preventing potential disputes among family members.
A verbal agreement is enough
Another common misconception is that a verbal agreement is sufficient to convey your wishes regarding the distribution of your assets. Unfortunately, verbal agreements are not legally binding, and without a written will, the state’s laws will dictate how your estate gets divided.
You cannot change your will
Some individuals fear that once a will gets created, it cannot undergo changes. The truth is that life is dynamic, and circumstances may change. Revisit your will periodically to reflect any changes in your assets, family structure or preferences.
Only older people need wills
Young adults often believe they do not need a will because they are young and healthy. However, life is unpredictable, and having a will in place ensures that your assets go to the people you choose, regardless of your age or health.
If you have yet to start the estate planning process, you should begin by writing a will. This can lay the foundation for your estate and protect your interests going into the future.