There are many myths and misconceptions in relation to Estate Planning. Have you stopped to think about whether there is any truth to any of them?
Estate Planning Myth #2: Only rich people need to worry about estate planning
Estate Planning is the process of ‘putting your affairs in order’. This incorporates making a Will, implementing Lasting Powers of Attorney, giving consideration to your wishes for later life and for when you pass away. Estate Planning can also incorporate inheritance tax planning.
Considering that the focus of so many articles in the press and on the internet are on high value estates and how to avoid inheritance tax, you can be forgiven for thinking that Estate Planning only applies to the wealthy. But the truth is that estate planning isn’t just for the David Beckhams and Madonnas of this world. Estate planning is for anyone who may become seriously ill or pass away. In other words, estate planning is important for everyone.
True estate planning makes sure that your finances and day-to-day welfare will be taken care of if you’re incapacitated, and that the people you care for the most are taken care of when you pass away.
You may feel that you only have a modest estate and there’s not much point in thinking about estate planning, however, those families with modest assets benefit just as much, if not more, from a good estate plan, since they can afford to lose the least.
Think about what you might have to leave to love ones – whether this has value or not is not relevant, then think about who would like it to pass to. Then consider who do you want to represent your best interests if you can’t represent yourself? Putting your wishes down on paper is so important – for you and your loved ones – whether your estate is modest or not, it is your estate and it has value to you.
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