There is a common misconception when it comes to estate planning. Some think that an estate refers to their house or property, and if they don’t own a home or property, then don’t need to estate planning. However, while estate is another term for one’s property, estate planning is more than just who gets the house. Even if you rent or live with another person, you still have an estate that you need to plan for in case of your passing.
The “estate” in estate planning doesn’t just refer to your property, it is everything you own. It is your bed, your dog, your bank accounts, even your favorite beer mug. Once you pass away, everything is lumped together into an estate and you need a will to decide who gets it.
If you do not have a Will, it is not like all your assets will “go to the state,” another common estate planning misconception. Instead, even estates that do not have a Will go to probate court where the judge will decide how the assets will be split among beneficiaries. Those that have Wills need to go through probate as well, but the difference is that by creating a Will as part of your estate plan, you control who inherits what.
It is often a problem of the young that they think they don’t need an estate plan just yet. Whether it is because they don’t yet realize that death can happen anytime to anyone or they don’t have what they believe to be sufficient assets, you shouldn’t put it off. Estate planning is important for those of all ages and it should be done sooner than later because you never know when you will need it. If you are considering your estate plan and need help figuring it all out, contact us today.