3 Estate Planning Myths that Keep People from Taking Proper Action
Estate planning is vital regardless of the amount of money you may have to leave behind for your loved ones. Unfortunately, due to some myths that are frequently cited on the Internet, some are moved to take either the wrong actions or no action at all when it comes to estate planning. We’re going to address those 3 estate planning myths and help you to prepare for your family’s future properly.
Myth #1: You Can Just Download a Will Template Online
You can, but you shouldn’t. The fact is that you don’t know who drafted the template you are downloading. If may not be viable in California if it was worded for execution in another state. You don’t want to wait until your family is in probate court for them to learn that your will was not executed properly. The Internet is a great tool for research, but some things are too important to do without the help of an experienced attorney.
Myth #2: I Can Transfer Everything to My Kids and Get Medicaid
That’s a great idea in theory, but you have to come up with the idea well in advance of needing medical care. If you just sign everything over to an heir and then immediately apply for Medicaid, it will get caught in the check, and you may get hit with penalties that will make you wish you just sold your assets and paid your medical bills in cash.
Myth #3: I Can Avoid Estate Tax by Using a Trust
First of all, the estate tax is for estates that exceed $5.49 million in value, so only a small fraction of estates have to worry about this tax. Second, forming a trust doesn’t automatically avoid this tax. You’re going to need to spend years combining trusts, gifts, asset transfers, and the like to avoid estate tax legally. Finally, trusts have plenty of benefits when it comes to things like avoiding probate.
Estate Planning Attorneys You Can Trust
Rather than trying to navigate the murky waters of estate planning on your own, come and see us at Petrov Law Firm. We enjoy helping families to see the full benefit of good advance planning. To schedule a consultation, call 619-344-0360.
