Estate planning myths can cause a lot of problems. People often buy into what they hear casually, even if they never got legal advice or did any deep research on their own. This can lead to critical mistakes that they regret later in life.
To help you avoid this scenario, here are three common myths to watch out for:
You can do your estate planning when you're older
Maybe you can, but you never know. Estate planning isn't just for grandparents or people who have retired. The unfortunate reality is that you can never predict when you'll need that plan. Putting it off could be a disaster.
Your estate plan covers your life insurance policy
Actually, you have to pick a beneficiary for your life insurance policy when you set it up. The money generally goes to that person, no matter what your estate plan itself says. For this reason, you want to coordinate things to make sure that your estate plan and your beneficiary designations work together.
Once you create the plan, you're done
You may not be. It's important to update the estate plan often, especially if you experience a significant life change. For instance, you could inherit money from your own parents or you could get divorced. When anything changes, update that plan to match.
These are not the only estate planning myths out there, but they give you a great place to start. Make sure you know exactly what legal options you have, what steps you need to take and how to create the ideal plan that reflects your wishes.