Many people have misconceptions about estate planning, but an argument can be made that estate planning is part of a comprehensive financial plan. Ohio residents might like to know about some of the myths that often make things complicated when it comes to estate planning.
Estate planning often includes issues that anyone might need to consider. As such, it is just a myth that only those with a high net worth need an estate plan. Anyone with assets or property may need an estate plan along with those who provide for others. Some common uses for estate plans include naming guardians for minor children, documenting preferred end of life care, listing funeral preferences and passing property to heirs.
Another myth is that estate planning is all about making a will. Wills help with some aspects of property distribution but do not cover everything. Some retirement accounts and life insurance policies are separate from wills. Additionally, other estate planning tools may be needed like a power of attorney, a trust or a living will.
While some think otherwise, estate plans are not permanent. As time passes, revision may be required. Estate plans might become outdated due to divorce or when moving to another state. Plans involving the care of minor children are not needed when these children become adults while the addition of grandchildren to a family may require a different distribution of assets.
The complexity of an estate plan varies according to one's needs. An attorney may help an individual establish whether trusts are necessary. There are several potential reasons one may need a trust. For example, trusts are more private and are not subject to probate court. A trust could also be necessary if a person wishes to stagger payments so that heirs do not receive everything at once.