“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.” These are just some of the myths surrounding estate planning. In recognition of Make a Will month, let’s address the most common myths surrounding estate planning and provide some facts. 

Estate planning is only for the wealthy. Even though the word “estate” connotes wealth, estate planning is for anyone who has assets whether those assets are money in the bank or property including vehicles, homes, jewelry, stocks and insurance policies. 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 farther 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. Even those without a partner or children should plan for the distribution of their possessions after their passing. Should your circumstances change in the future, you’ll already have a plan in place to amend. If you do not intend to include heirs, consider leaving part or all of your assets to a nonprofit organization of your choice.

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. Beneficiary designations are an easy way to care for your loved ones and cost you nothing at the time they are promised. You can also endow an estate legacy fund so that it continues to give in perpetuity. 

A will is enough; you don’t need a plan. Read more.