Have you taken the time to create a document regarding your estate? If the answer is no, then you're among the majority of Americans, especially if you think it's not worth your time. Regardless of the size of your estate, it's worth sitting down with a local estate planning lawyer, especially if you have some misconceptions about the process. Unfortunately, there are several myths circulating regarding estate planning, and this article will uncover some of them.

1. It's Only for Rich People

Many Americans are under the misconception that only a rich person should hire an estate planning lawyer. After all, when people hear the word estate, they likely think of lofty mansions and million-dollar trust funds. While those things can be included in an estate, those aren't the only requirements. Whether you earned a working-class or middle-class income, if you have assets remaining upon your death, you should designate an intended recipient for those assets. In other words, if you wish to provide for your spouse, children, grandchildren, a few nieces and nephews, and your best friend, you can specify all of these details in your estate planning document. Is there a church or charity that you supported during your life and wish to continue supporting with whatever is left in your estate? You can also specify an organization as a beneficiary.

2. You Can Only Name Adults as Direct Heirs

Do you want to leave your entire or majority of your estate to your children or grandchildren? If you want to ensure they're the main inheritor, but they're not of age, you can protect what they have by appointing a guardian. According to Forbes, you can name a legal guardian for any minor you leave your estate, and they will handle their business until they turn 18.

3. You Can Only Use a Will

Estate planning documents don't just stop at wills. Trust funds are an even better solution, especially if you want to keep the stipulations of your estate as private as possible. A will could be faster to draw up. However, it won't be nearly as fast for your heirs to benefit from. After all, a will must go through probate which can easily last a year or more. If you want your loved ones to benefit immediately or as soon as possible, you should create a trust that will have a trustee to manage the process. With property, you can begin transferring deeds to designated heirs while you're still alive.

4. Money Will Automatically Go to Your Next of Kin

Understand the inheritance rules based on your state. Note what the laws are regarding who is considered next of kin. In most cases, your next akin is your spouse, or it may automatically be your child. Some states split funds evenly between a surviving spouse and children when there is no will. To play it safe, you should specify who your exact beneficiaries are. Don't forget what can happen during a divorce. If you pass while still separated from a spouse, but the divorce hasn't been finalized, they may legally still be your next of kin. When you make any major life alterations, it's a good idea to immediately update your estate plan, whether it's a will, trust deeds, etc.

5. Debt Won't Matter When You Die

If you think your debt will disappear upon your death, you couldn't be more mistaken. In the case of a will, one of the main purposes of probate is to give creditors the chance to make a claim against your estate. None of your beneficiaries will receive a dime until all creditors get paid first. If you're worried about debt and how it can affect your family, you should discuss that immediately with an estate planning lawyer.

These are just some myths that people may have regarding planning an estate. An estate can never be too small to plan, especially if you want to take care of your family and friends upon your passing. After all, regardless of how small your house is or how few paintings you have, you don't want them to fall into the wrong hands. To learn more about estate planning and what options are best for you, contact Law Offices of David H. Trevett, PL today for a consultation.