Surprisingly, more than half of Americans don’t have a will, arguably the most important document in an estate plan.
The consequences are serious. Dying without a will means a local probate court will decide how to distribute your assets. While judges follow state laws that approximate the wishes of the average person, your actual wishes remain a mystery to them without a will to guide them. This means your treasure could be handed over to the state or distant relations. It means expensive complications and worry for loved ones struggling to handle your affairs. It can also mean the causes you support charitably get left out in the cold. Read more about the consequences of dying without a will in New York State here.
There are also other important documents to consider in your estate plan, such as a health care proxy, which allows you to choose someone you trust to make health care decisions on your behalf.
For many, the reluctance to estate plan is based on the following common misconceptions. We’re here to debunk these myths and provide you with the resources you need to secure your legacy.
Myth #1: I’m too young to start thinking about estate planning.
In the United States, you can create a will and complete a health care proxy as soon as your 18th birthday, when many legal implications of adulthood kick in. As soon as you have property, valuable belongings, or children, you should have a will. This document allows parents to articulate who should care for their young children if tragedy strikes. In short, creating an estate plan can save your family a lot of time and trouble, no matter how old you are.
Myth #2: I don’t have an estate, so I don’t need to plan for one.
An estate doesn’t just refer to homes with stables and ample acreage. An estate is made up of your total assets minus your liabilities. Yes, this includes property and bank accounts, but it also includes insurance plans, pensions, copyrights, and family heirlooms. It can be anything with real value. With an estate plan, you can take comfort in the fact that you can decide who gets what and who takes care of whom.
Myth #3: Planning my legacy is too complicated and I don’t have the time.
No matter how complicated your assets are, there are professionals who are trained to help. Trust and estate attorneys, family lawyers, financial advisors, and other professionals can help you with your estate planning. We always recommend working with a professional and it is easier than ever—many attorneys can now work with you remotely and the pandemic made it easier to file an electronic will.
If your estate is simple, or you are looking for a low-cost option, there are now many accessible and affordable services that can help get you started, such as FreeWill.com.
Myth #4: The only document I need to worry about is a will.
A will is very important, but it’s not the only document you need. Other documents such as a Power of Attorney and Health Care Proxy can provide much-needed direction to your loved ones either at the end of your life or when critical healthcare decisions need to be made. We sat down with author of “5@55: The Five Essential Legal Documents You Need by Age 55,” Judith Grimaldi to discuss these end-of-life considerations. Read about the documents you need here.
Myth #5: My family knows the causes I care about and will continue giving that way after I’m gone.
Your heirs may have very different interests than you, but The New York Community Trust makes it easy to ensure your charitable legacy continues in perpetuity and champion the causes you care about. You can learn more about leaving a legacy here.
