5 Estate Planning Myths

Estate planning is not a subject that many people want to think about, but it's crucial to your life plan. Putting a plan in place is the best thing that you can do to ensure that your family and financial goals are taken care of and that the people left behind know your wishes.

1. Estate planning is for the wealthy. It doesn't matter how much you have in your accounts or how many valuables you own. You want to be sure that whatever you do have goes to the person of your choice.
2. I'm too young to worry about estate planning. Unfortunately, life can change on a dime. It doesn't matter how old we are or how much of an estate we have to take care of, putting a plan in action is the best thing you can do for yourself and your loved ones.
3. Everything will go to my spouse anyway. While being married does make dividing your assets seem a bit easier, there are a lot of things that can change that, like if your spouse remarries or if you and your spouse pass together. Without an estate plan, these situations can leave your finances in disarray.
4. My family will do the right thing. While the hope is that our families will honor our wishes and do the right thing, the best thing that you can do is to make your wishes explicitly clear to mitigate any potential issues.
5. I don't have to coordinate my retirement accounts or insurance policies. Your 401(k) and life insurance should still be included when planning your beneficiaries and asset divisions. Remember, the person that you designate to receive the money on the actual accounts should match the person listed in your estate plan.

Luers & Dyer, CPAs, LLP is a full service accounting firm with offices in Julian and San Diego. For more information about our company call (760) 765-0343.