In a recent interview, leading estate planning and elder law attorney Michael T. Huguelet, founder of the Law Office of Michael T. Huguelet, P.C. in Orland Park, IL, revealed common estate planning myths. —
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When asked for a comment, Huguelet said, “Estate planning – and family protection planning in particular – is one of the best things to guarantee that you and your family are protected during your lifetime but also after you’ve passed away.
Unfortunately, many common myths surrounding estate planning lead many to put it on the backburner until it’s too late.”
One of the most common myths out there is that estate plans are only for the rich and famous.
“Estate planning is for nearly everyone, no matter how many people know of you or how much money you have in the bank.
The primary goal of estate planning is to ensure that whatever you do own – even if it’s only a house – is protected in the event that you become incapacitated during life or that your wishes are carried out upon your passing,” he said.
Following this, many incorrectly assume that retirement accounts and insurance policies are not included as part of estate planning.
“Both life insurance and retirement accounts such as 401k’s and IRA’s are a vital part of a person’s wealth portfolio and need to be incorporated into any estate plan. Once someone has passed, the assets in these plans will be handed down to the beneficiaries. There are very specific rules regarding beneficiaries and this needs to be coordinated. Failure to do so can have very unfortunate consequences.” he added.
Another widespread misguided belief is trusting that family members and loved ones will make the correct decisions regarding an estate.
When asked to explain further, Huguelet said, "Typically speaking, dysfunction becomes quite apparent when family and money are intertwined with one another. Estate planning puts into place legal structures designed to safeguard your assets and the beneficiaries you assign to them. It's important that you establish those legal structures, not anyone else, otherwise your initial wishes may not be met."
Huguelet quickly added that people often think they can quickly throw together an estate plan using DIY websites that offer readymade templates.
“This is simply not the case. Estate planning is not one of those things you want to go at on your own. Many people often assume that the process is assigning an executor to be in charge of a will and a trustee to manage a trust. However, a robust plan needs to take into account the many possible life events, such as if the beneficiary you assign were to become incapacitated or even to pass away,” he said.
Name: Michael T. Huguelet
Email: Send Email
Organization: Law Office of Michael T. Huguelet, PC
Address: 10723 W. 159th St. Orland Park, IL 60467
Phone: (708) 852-0733
Source URL: http://RecommendedExperts.biz
Release ID: 88987150