Common Misconceptions about Estate Planning in Michigan
Although the idea of estate planning is rather easy, many individuals are unaware of what it comprises. As a result of this confusion, many common estate planning misconceptions have emerged. Unfortunately, misleading information and false assumptions can discourage people from creating a plan to protect their family, money, and property in the case of their death or incapacity. Here are some common misconceptions about estate planning in Michigan and a brief explanation of why they're not true:
Myth 1: Estate Planning Is Expensive And Time-Consuming.
The only costs associated with estate planning are the costs of hiring an attorney to assist you in drafting the necessary documents. Although this may appear to be a discouragement to some people, it saves time and money in the long run. If you don't have an estate plan or if you try to handle it on your own and make mistakes, your estate may be jeopardized, and your beneficiaries may be forced to spend extra time and money navigating the probate process.
Myth 2: Probate Is Avoided By Having A Will.
Your possessions must still go through probate court even if you have a Will. You may need to initiate probate in more than one state if you possess real estate in many states. Your Will is simply a letter to the probate court expressing your intentions. If you die without a Will, your assets will be allocated according to Michigan's intestacy laws, which means you will have to go through probate. Probate takes at least six months to distribute your assets to your loved ones. However, if your estate is moderately complex or if your Will is disputed, it might take considerably longer.
Myth 3: If I Die Without A Will, My Assets Will Be Distributed To My Spouse Or Significant Other Immediately.
If you die without a Will, your estate will be allocated according to the intestacy laws in Michigan. These are laws that decide who will inherit your estate if you die without leaving a Will. The probate court is where this happens. Probate may take a long time and cost a lot of money, especially if you don't have a Will. In addition, depending on the state's intestacy laws, the persons you choose to inherit your belongings may be completely left out. Except in the case of tenancy in common, jointly held property usually transfers to the other owners without the requirement for probate, but other assets may not be treated the same way.
Myth 4: Only The Wealthy Need To Plan Their Estates.
Estate planning is not just for the ultra-rich; it is for individuals of all ages and walks of life. You should have an estate plan in place regardless of the size and value of your estate or your marital status. It's especially vital if you own property and have loved ones who rely on you. Estate planning is more than just planning for your death; it also includes planning for the rest of your life. It can help you plan for incapacity, safeguard your family's future financial requirements, designate a guardian for young children, and more. Not only liquid assets are included in your estate plan. It comprises personal, tangible assets such as furniture or jewelry that may be contested if you die abruptly. Throughout your life, your estate is expected to increase, and that growth may be subject to inheritance and estate taxes.
Myth 5: Estate Planning Isn't a Pressing Need
You must not wait until you're older before starting your estate planning. It can be done at any age, although it is best to start as soon as you can. This is because, while no one likes to think about becoming injured or incapacitated, it is always preferable to be prepared. In the case of these events, an estate plan can include documentation outlining what beneficiaries should do with their assets, healthcare, and financial commitments, among other things.
Estate planning isn't only for the rich; it's important for everyone. Some of the essential legal documents you will produce during your lifetime are your estate planning paperwork. It's critical to work with an experienced expert to ensure that your plan protects your family, money, and property the way you planned.
Contact us today at MyEstatePlanMI.com or 248-744-4434 to schedule a one-on-one consultation with an experienced Michigan estate planning attorney. I can offer you the reliable advocacy and knowledgeable legal guidance you need to navigate important decisions in your estate planning endeavors.