Uninformed New Yorkers often make decisions that work against their best interest. For instance, many people believe false information regarding estate planning, often resulting in individuals making no plan whatsoever. Not creating a plan, however, is a major misstep.
The first significant myth regarding estate planning is that plans only benefit individuals with substantial wealth. In reality, any adult could benefit from having an estate plan. Estate plans do not just address assets, which, incidentally, is another myth; parents can use their estate plans to name guardians for minor children, and anyone could plan for the potential need for long-term care in the future.
Many individuals also mistakenly believe that a will handles the entirety of asset distribution after death. That is not the case. Some assets, such as retirement accounts and insurance policies, can have designations that allow those assets to pass directly to named beneficiaries. As a result, it is wise to review these accounts and name or update beneficiaries while estate planning.
These are only a few of the common misconceptions about estate planning. To create an effective and comprehensive plan, it is important to have the right information. Therefore, interested New York residents should consult with experienced attorneys who can explain planning options and how certain steps can ensure that all necessary aspects of estates are addressed.