Idaho Law Blog
In my practice as an estate planning attorney, I often have clients who want to talk about what they think they know about estate planning. It usually starts with a statement/question like the following: “It’s true isn’t it that . . .” The client then will make the statement that they have heard from a family friend or read on the internet. Most often, the statement/question made by my clients is just plain wrong. Here are the Top 5 Estate Planning Myths that I have heard as an estate planning attorney.
1. Only the Wealthy Need Estate Planning.
The very word “Estate” planning misleads many people into thinking that only the wealthy need estate planning. Most people believe that only rich people have an “estate” but this is not true. Every adult in Idaho has an estate. This is made up of everything that person owns and everything they owe. Belongings and debts are the estate. Because of this, every person needs a plan on what will happen to their belongings and their debt when they pass away. But estate planning is so much more than just dealing with your “stuff”. It’s also about making sure that your day-to day life, including your finances, are taken care of if you’re incapacitated. Additionally, it includes making sure that decisions about your health care are carried out the way you’d like even if you’re not able to make them. So, even if you aren’t wealthy do you need estate planning? YES!
2. Having a Will will Help me Avoid Probate.
This statement comes really from a lack of understanding. In Idaho, your estate will be probated, if it’s value is more than $100,000 and/or you own real property when you die. This is true whether or not you have a Will. Having a Will simply allows you to make your wishes known as to who you want your stuff to go to. Essentially a Will provides your loved ones, and the probate court with instructions on your wishes.
3. I don’t Need a Lawyer to Help me with my Estate Planning or a Probate.
This one is actually true. Does that mean that I am out of a job? No. The reality is that most Individuals don’t know anything about the estate planning process or the steps that are necessary to take in a probate. Having an attorney help you with these things and assure that they are being done correctly. Alternatively, if you choose to get advice from the Internet, or to buy a Will drafting kit, you will have no assurance that the estate planning you’ve completed is actually valid in the state you live in, and is in line with all applicable laws and rules. To be honest, a good deal of the work I do in Estate Planning and probate is to help people change and overcome the problems that were created in the estate planning or probate work they began on their own.
4. If I Pass Away Without a Will, the State Will Get All of My Property.
This one is patently false. If you don’t have a Will then you die “intestate”. This is a legal term that simply means you don’t have a written Will. When that occurs, the laws in the state of Idaho create a default Will for you. What this means, is that the state statutes direct who your property will go to and in what amounts. Most people would rather make these decisions on their own. It’s for this reason that we encourage everyone to create their own Will and estate plan.
5. I’m Too Young to do Estate Planning.
This one is similar to people who think that they aren’t wealthy enough to do estate planning. It is really false. Each and every adult in Idaho should have an estate plan completed for them. The reason for this is because every person’s circumstance and situation are different. Some people may own many assets but not have very many relatives. Alternatively even a young couple may have children or other relatives that they want to care for if they were to pass away. Every circumstance calls for a specific and well thought-out estate plan that will address what needs to be done.
The bottom line is there are many myths and misunderstandings about estate planning. Don’t take what you have heard from friends or maybe even read on the internet as gospel about estate planning. If you have any questions about estate planning or probate, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
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