Contemplating the end of your life is never an easy or lighthearted task. However, engaging in estate and legacy planning can give you real peace of mind and make things a lot easier for your loved ones after you’re gone.
At Good Life Morehead City, we understand the value of estate and legacy planning. It allows you to live your best life now and have your wishes carried out when you’re no longer here. We’ve witnessed the comfort it brings to clients, and our financial advisors can guide you through the process of getting your plan in place.
If you’re hesitant, perhaps you’re under the spell of one of the many enduring myths about making plans for your estate and legacy. This article aims to set the record straight by debunking the top seven myths about estate and legacy planning.
What Is Estate and Legacy Planning?
Chances are you prepare for just about every aspect of your life. It’s helpful to view estate and legacy planning in this same way — at its simplest, it’s about being prepared.
Estate and legacy planning involves deciding how to pass on your assets after you die. But it’s also about taking care of your loved ones, relieving them of the burden of making decisions about your burial, protecting and passing on your legacy, and maximizing your estate’s tax efficiency.
7 Myths About Estate and Legacy Planning Debunked
Many people continue to believe things about estate and legacy planning that are simply untrue. Learn what these myths are and the truth behind them so that you can be better informed about this important practice.
Estate Planning Isn’t for Young People
When you’re young, you often feel invincible. As a result, you may never consider that you might not be here tomorrow. But that speaks to the essence of planning: preparing for the unexpected.
If you have any assets or you’re married, consider putting estate and legacy planning on your agenda. Someone must do something with your assets when you’re gone, and you have the power to decide what happens to them.
Estate and Legacy Planning Is for Wealthy People
Safeguarding and divvying up assets is a big part of estate and legacy planning. However, the value of your possessions doesn’t necessarily determine your need to plan. Estate planning can go a long way toward helping your loved ones after you’re gone, even if all you have is a bank account or a small bit of real estate.
Legacy Planning Isn’t Important
You either have or will build a reputation, and how you’re remembered can significantly impact your family and community. Even before you’re incapacitated or dead, you can live out your charitable giving goals and strategies for passing on gifts to your family.
Estate Planning Is Complex and Expensive
It can take some effort to pull together documents and think through arrangements, but creating your will and trust doesn’t take a lot of time. Of course, how complex and expensive it becomes can depend on the size of your estate. But technology has rendered the process fairly simple these days.
A Will Takes Care of Everything
A will is one of the important parts of estate planning. However, many other documents, such as life insurance policies and beneficiary designations on retirement accounts, determine what assets go to whom.
Other important documents, such as the power of attorney or a living will, can play a big role in your estate planning, too. You’ll also want to consider factors like making your funeral arrangements, choosing a designated caretaker for your children, and more. Estate planning can see that all your documents and wishes are accounted for.
You’re Done with Estate and Legacy Planning
As long as you’re alive, you’re never done planning. As you age and experience life changes, your estate plan will change alongside you.
You may get married or divorced, have children, find new wealth, or lose your wealth. Your estate plan must capture the ebbs and flows of your life to properly direct your loved ones to carry out your wishes after you're gone.
Taxes Will Chew Up My Estate
Part of estate and legacy planning is implementing tax-efficient strategies to help preserve your wealth and pass it on to the next generation. Planning for estate, inheritance, and gift taxes can go a long way toward keeping more of your wealth in the family or with organizations you support instead of in the hands of the government.
Find a Financial Advisor for Estate and Legacy Planning
If you ever believed any of these myths, it’s our hope that you now see how estate and legacy planning can fit your financial goals. At Good Life Morehead City, we believe you can’t put a price on the comfort of knowing your loved ones won’t have to agonize over your assets. Reach out to us today for help with estate and legacy planning.