Here are just some of the myths surrounding estate planning:

• “Estate planning is only for the wealthy.”
• “Estate planning is for the elderly and retired.”
• “A will is enough; I don’t need a plan.”

In recognition of National Make-A-Will Month, let’s address the above myths and others surrounding estate planning and provide some facts.

If you want to ensure your assets and your loved ones are safeguarded now and in the future, you need an estate plan.

Estate planning is for the elderly and retired. Nothing could be further from the truth. It is important to plan where your assets go after your death so the state of Maryland doesn’t decide for you. If you don’t have a will or estate plan, Maryland will determine who inherits your assets and how your property is distributed, as outlined here: www.peoples-law.org/maryland-intestacy-law.

Decisions about the care of minor children and pets will be made by a court, which could be devastating for those you leave behind. The bottom line is that these important decisions might not align with your wishes or intentions.

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Estate planning is only about where your cash will end up. While cash is part of your assets, so are stocks, bonds, life insurance policies, properties including real estate, IRAs, 401K accounts, annuities and pensions. You can provide for your children, significant other and the causes you care about by leaving all or a part of your estate to one or several beneficiaries.

A will is enough; you don’t need a plan. Drafting a will is only the initial step in developing an estate plan. While a will is better than nothing at all, an estate plan includes a will and can also contain a power of attorney and advance directive, which designates the people you trust to manage your assets and care if you become incapacitated. Additionally, a trust—a legal entity created to hold, protect, control and distribute your assets—can be incorporated into an estate plan.

I don’t need a lawyer to draft an estate plan. Lawyers can help find nuances that you may have missed drafting an estate plan — even in simpler cases. It’s always wise to seek legal advice when making an estate plan. It is also important to remember to file your will with the Register of Wills in your local county office.

I don’t have enough money for the estate tax to apply. It depends. By 2025, estates exceeding $5 million—covering home equity, retirement accounts, life insurance payouts and other assets — are set to be taxed at 40%. Additionally, many states impose their own estate and inheritance taxes.

Estate planning is overwhelming. If you start taking estate planning one small step at a time, it is very manageable. Begin by taking an inventory of what assets you own and their approximate value. Then contact your professional advisers for their input.

CFAAC can work hand-in-hand with your professional advisers should you wish to leave a portion of your assets to charity. CFAAC also offers a guide that can help you begin to think about your estate planning. For a copy, contact Director of Gift Planning John Rodenhausen at 410-280-1102, extension 103 or at john@cfaac.org for more information.

The Community Foundation of Anne Arundel County (CFAAC) is a tax-exempt, 501(c)(3), publicly supported philanthropic organization with the long-term goal of building permanent funds that provide support to local nonprofit organizations through grants and special projects. Our mission is to inspire and promote giving in Anne Arundel County by connecting people who care with causes that matter. Established in 1998, CFAAC is one of the largest funders of nonprofit organizations in Anne Arundel County. CFAAC distributes $5 million to $7 million annually.