Common Misconceptions in Estate Planning

by | May 8, 2024

When it comes to estate planning, there are many common misconceptions. At Axis Law Group, an estate planning law firm, we take an educational approach when meeting with clients and ensure that you leave knowing the best practices in the industry. This blog will touch on a couple of the misconceptions we encounter on a weekly basis.

Misconception #1: Wills Avoid Probate

Many people believe that having a will is sufficient to avoid probate. While this may be the case in other states like Texas, in Colorado a will alone won’t avoid probate. Rather, a will acts as an instruction sheet for probate and streamlines the process by telling the court who you would want as your personal representative and how you want your assets to be distributed. Though it is possible to avoid probate while using a will, the simplest way to avoid probate in Colorado is through the use of a trust.

Misconception #2: Estate Planning is only for the Wealthy or Elderly

If you’ve ever thought to yourself that you don’t have enough assets to justify estate planning or using a trust, then you’re not alone. Many clients have this hesitancy when coming in for their initial consultation. However, to use estate planning and, specifically a trust, one doesn’t have to be a billionaire. Estate planning allows the average person to use tactics, like a trust, to protect their assets and family now, while detailing how you want your estate distributed upon your passing.

Though estate planning does include strategies about how to protect and distribute your assets (as was just mentioned), it also involves making important decisions for your family’s wellbeing right now. Waiting until you think you have sufficient funds in your estate, or until you think you are sufficiently old enough for an estate plan, is a mistake. For example, who do you want to act as guardian for your minor child were you to pass? Appointing a guardian for your minor children is one of the most important decisions you can make with proper estate planning and is something that would be overlooked if you waited too long.

Misconception #3: Ignoring Disability Planning

Having a will or a trust to organize the estate around is great. However, this is merely the first step in estate planning. By ignoring issues of disability, you and your loved ones can land in costly situations. As an example, who do you want to make financial or medical decisions on your behalf if you become incapacitated through a stroke, brain aneurysm, or dementia? How many days do you want to be on life support? Who do you want to receive medical information concerning your wellbeing? All of these questions can and will be addressed if you visit Axis Law Group for estate planning. Don’t make the mistake of thinking that your assets are the only thing that needs protecting.

At Axis Law Group, we ensure that all aspects of your estate (your assets, your family, and your physical wellbeing) are carefully addressed. Don’t continue to believe common myths and book a free initial consultation today.