Estate planning is a crucial yet frequently misunderstood aspect of financial security. Misconceptions about how estates are managed often cause unnecessary delays and avoidance. This month, we address some common questions and misconceptions.

“Do I just need a will?”

Many people believe a will is enough to accomplish their goals. Though wills are an important part of an estate plan, they don’t cover every aspect. Estate planning goes beyond simply distributing assets; it also addresses critical decisions like appointing guardians for minor children, outlining medical treatment preferences, and assigning agent(s) to make decisions on your behalf if you become incapacitated. Other common estate planning documents include trusts, which can help bypass probate and provide instructions for how to administer your estate; powers of attorney for healthcare and finances; living wills; healthcare directives; and deeds.

“I already did an estate plan years ago.”

Many believe estate planning is a one-time task. It’s actually an ongoing process that should be revisited as life evolves. Major events, like the birth of children or grandchildren, death, marriage, divorce, financial changes, or a change in personal preferences, often call for updates. Regular reviews can reveal changes in your wishes, new assets, or the need to update individuals or non-profit organizations named in your documents.

“Isn’t estate planning only for the rich and elderly?”

Everyone, regardless of age or net worth, can benefit from having an estate plan. Unexpected, life-changing events can occur at any time and having a plan and appropriate documents can help to ensure that your wishes are followed.

“Won’t my things just go to [so-and-so] when I die?”

In New Hampshire, most assets do not automatically transfer to your legal heirs when you pass away. First, they must go through the probate administration process. If you don’t have a valid will when you die, your assets pass to the “default recipients” which are set by state law.  Occasionally, the default recipients don’t align with people’s expectations. Having estate planning documents in place ensures that your wishes are clearly defined and honored.

About Wescott Law

Navigating your estate planning can be a difficult and daunting task. At Wescott Law, we have a team of attorneys ready to help with your estate planning needs. Contact us at info@wescottlawnh.com or (603) 524-2166 to schedule a consultation.