Estate planning is intimidating to some Florida residents, and people might believe in untrue ideas regarding the need for an estate. For starters, everything you own, even a pet, is part of your estate. Whether you earn income or just have a few possessions, not only can you plan an estate, but you can also build one. Here are some aspects involved with estate planning that have to be debunked.
1. Estate plans have automated updates
Having a will is great, but major life events call for you to update your will manually. What happens in your life, such as having a child or getting a divorce, doesn’t convert to your will unless you update that will.
2. Wills stand indefinitely
Giving a financial account to someone through a will relinquishes your rights to that account. A will is limited in enforcing the directives it gives someone. The way to ensure that your assets are used as you wish is to issue a trust. This arrangement appoints someone else to manage your assets though those assets go to a beneficiary.
3. Planning takes no time
The steps in planning an estate comprise a strategy that holds assets, grows them and then transfers them to others. Within these phases, there are endless ways to avoid taxes, increase gains and diversify your assets. It all takes time and care.
4. Children with disabilities maintain assistance
Children with disabilities who get substantial assets can lose government assistance. What a beneficiary receives from a will could be counted as their taxable income. What you may choose to use, instead, are insurance plans, trusts and IRAs.
It’s best to be optimistic about your financial future because holding onto the myths above can have consequences. You can build an estate and prepare a strategy for making sure your wishes for your assets are followed.