Three Common Myths About Estate Planning

When trying to protect your legacy, estate planning is one of the most important steps you can take. Still, too many people believe common myths that can actually interfere with estate planning. It is critical to work with a Utah estate planning attorney when planning the legacy you want to leave behind to ensure that your property, future, and loved ones are protected. Below, our experienced attorney outlines three of the most common myths about estate planning in Utah.

Establishing a Trust Will Automatically Protect Your Assets

Many people believe that establishing a trust will protect their property from creditors, taxes, and divorce. They also believe that after creating a trust, their assets are automatically protected from the probate process. Unfortunately, these myths are not true. Trusts only work as they are intended when they are properly funded, and this does not happen automatically. Instead, you must retitle any property you want to place into the trust into the name of the trust.

If property is not transferred into the trust, the document does not provide the protection it otherwise could. The assets will still be subject to probate and could be seized by creditors.

An Estate Plan Only Establishes How Property is Distributed After You Pass Away

This may be the biggest misconception surrounding estate planning in Utah. Many people think planning their estate is simply about stipulating what happens to their property after they pass away. However, it is also about protecting your future decision-making abilities and well-being.

You can include a number of documents in your estate plan such as medical directives, powers of attorney for health care and finances, and HIPAA authorizations. These legal documents can help you retain control over your decisions if you ever become incapacitated. While other people will still make decisions on your behalf, you can choose who that individual is and make sure they are aware of your wishes.

The Best Way to Disinherit Someone is to Leave Them $1

The concept that leaving someone a small amount of money is outdated. It was once thought that leaving someone you wish to disinherit a nominal amount shows that you did not simply forget about them, but that you do not want to leave them a significant amount of property. Leaving something for someone you want to omit from your plan, though, can result in them challenging your plan or accessing certain information. Instead, clearly state within your plan that you meant to omit a certain person from the plan.

Our Estate Planning Attorney in Utah Can Help You Make Informed Decisions

At AGS Law, our Utah estate planning attorney can provide the truth behind common misconceptions so you can make informed decisions based on the law. We will also execute your documents properly so you, your property, and your loved ones are protected. Call us today at 801-477-6144 or contact us online to schedule a consultation with our experienced attorney and to learn more about how we can help with your case.

Source:

le.utah.gov/xcode/Title75/Chapter2A/C75-2a_1800010118000101.pdf