Do not buy into the estate planning myths that you hear so often. They can be very problematic, and many people have made serious mistakes based on these false ideas.
Below are four myths to watch out for. They can be costly.
1. Only the elderly need estate plans.
You never know when an estate plan will be needed. Injuries, accidents and diseases all take lives far before people reach their 70s, 80s and 90s.
2. Estate planning is just for the rich.
The rich may have a larger estate, but everyone needs a plan. Even a relatively small amount of assets needs to be properly passed on to your heirs.
3. You do not have to pay estate taxes if you do not have much money.
Technically, federal estate taxes just kick in once you pass a certain threshold. However, Pennsylvania is one of several states that still has an Inheritance Tax which is assessed on almost all assets, regardless of value.
4. Trusts automatically avoid some taxes.
Trusts can help you avoid taxes, and they are often used to do so, but do not assume any trust automatically does so. You must know exactly what type of trust to use and how to set it up for your unique situation in order to obtain the desired result.
There are a lot of estate planning myths out there, and these are just four examples. Be sure that you take the time to really understand all of your legal rights and obligations with your estate plan. To learn more, contact an Estate Planning attorney at the Quinn Law Firm by calling 814-806-2518.
Source: Forbes, “10 Common Estate Planning Myths That Can Be Detrimental to Your Family,” Erik Carter, accessed May 22, 2018