There are various myths and misconceptions surrounding the issue of estate planning. Most of these myths are the produce of sloppy communication between clients and the media others are from the misunderstanding of some of our most basic laws.
Estate planning is a powerful tool that individuals with large and small estates must understand to ensure that their estate is awarded to their chosen recipients when they pass away. The following are the most common myths about estate planning. For more information about estate planning, you can also visit http://speedwelllaw.com/alexandria-estate-planning-attorney/.
Estate Planning is only for the Rich. This is often a costly assumption to the people who most need the protection the most. The misconception comes from the focus on estate taxes by lawyers and financial advisors, but most people will not have to worry about complicated estate tax issues as they affect million dollar estates. Planning itself matters to everyone because it involves designating your health care and your assets to individuals of your choice in case you become incapacitated or pass away.
Estate Planning Protects My Assets. A family trust won't protect your assets from lawsuits or business risks. Most states classify family trusts or living trusts as transparent, therefore your assets are vulnerable to lawsuits and other losses as if you never did estate planning. Homeowner's liability insurance and auto insurance are a few simple examples of true asset protection. Hire a specialist to protect any specific assets.