Countering Three Common Misconceptions You Think You Don’t Need a Will 

Benjamin Franklin said it best…”In this world nothing can be said to be certain, except death and taxes.” Despite the human race’s desire for immortality, our passing is inevitable, and while we may fear it, we also need to prepare for it.  Estate planning is a valuable tool to protect what is most important to you and your family.

In the legal world, many professionals use the term ‘CYA’.  In the PG-Rated world, this means “Cover Your Assets”.    Many attorneys use this term when putting advice in writing, so that they may later refer to it as irrefutably expressed.  No one can say they did not advise their client of the best legal recourse because there it is, in black and white, signed and dated.  This term also applies to an individual’s estate planning needs.  It is essential that people record their last wishes in writing, leaving no guesswork for their loved ones, in order to cover their assets.  That said, planning for your eventual non-existence is something that you probably are not inclined to do.

Here are three common misconceptions about estate planning:

1. “I don’t have an estate, why do I need a will?”
Even if you do not own a home, car, etc, most people probably still have some form of an estate.  Kirsten Jacobs , an attorney at The Law Center, P.C. in Colorado and a member of the Women’s Estate Planning Council, says “An estate includes all of your property: bank accounts, life insurance, retirement accounts, personal property and real property.  If you have any of these items, you have an estate.”

An “estate” can have different meanings, depending on your situation.

For instance, the social media will has become a new and very important aspect of estate planning.  To many of us, social media is a large part of our lives.  According to USA.gov, everyone who is active online should consider creating a plan for how you would like your social media identity to be handled in the event of your passing.  By appointing an executor of your social media will, you can ensure the closure of your email addresses, social media profiles and blogs after you are deceased.

Simply put, not having a traditional estate does not mean you do not need a plan for the future.

2. Estate planning is “a man’s job”.
Men are no longer the sole bread winners, bill payers, and money managers.  Women are earning  just as much, if not more income than their partners, if they even have partners.  Many women are the sole heads of household.  According to the Pew Research Center’s analysis of the Decennial Census and American Community Survey, “a record 40% of all households with children under the age of 18 include mothers who are either the sole or primary source of income for the family.”   These women either have higher incomes than their partners, or are single mothers raising families on their own.  In addition to these breadwinners, there are many more female business owners now than there were even just ten years ago.

Attorney Jacobs says, “It is imperative that everyone, young and old, married or single, kids or no kids, have at least a basic estate plan in place.”  More and more, women are stepping up to the money-making plate, which means it is even more important for women to be aware of estate planning and how it affects them.

3. “Aren’t a will and a trust the same thing?”
There are three important legal documents, which may apply to your situation, depending on your needs.  Many people do not understand the subtle differences between them.

According to Legalzoom.com, a trusted site for personalized, affordable, legal protection, each of the following three documents could help when planning your estate:

1. A Last Will is the most common of the three.  It is used to distribute property to chosen beneficiaries, name guardians for minor children, and specify last wishes.  The struggle with the Last Will is that it is a matter of public record and can be disputed in Probate Court.
2. A Living Will differs from a Last Will in that it outlines important end-of-life healthcare decisions in advance.  This is so that, in the event you are incapacitated, your wishes will be clearly explained for your loved ones.  Friends and family can be spared difficult decision making in an already trying time.
3. The third legal document is a Living Trust.  The Living Trust is similar to the Last Will in that it is used to transfer assets to chosen beneficiaries.  However, the Living Trust is not typically subject to Probate Court and is not a matter of public record.  A downfall to the Living Trust is it does not appoint guardians for minor children.  It is more for financial purposes.  Oftentimes though, when developing a Living Trust, a Living Will is set up as well to delineate who will obtain custody of the minor children.

Depending on your circumstances, one of these or a combination of the three will best represent your wishes after you have died.  Loved ones will not have to guess about end of life arrangements because the plan will be laid out before them.  It is also important to remember that this is not a one stop-shop!  After any life-changing events, your will or trust should be updated.  Life-changing events include but are not limited to marriage, divorce, having a child, a large increase/decrease in assets and many others.

Cover your assets.  Both Attorney Jacobs and the Women’s Estate Planning Council are spreading the message that estate planning is important to all individuals, no matter what their life and financial situation.  Whether that means allocating the destination of your funds, appointing a guardian for your children, designating a successor for your business or simply providing instructions for the dismantling of your social identity, get out there and CYA!