No matter how old a person is or his or her income level, it is important to think about the future and make plans for contingencies. Through estate planning, a person can decide what will happen to his or her estate, leave specific things for beneficiaries, and even plan for health care needs in the future. However, certain common misunderstandings about estate planning can leave a person without the protection he or she needs.
It's common for people to think they need a certain amount of money or income level to warrant having an estate plan. The reality is that this is a smart step for virtually every Tennessee adult. With a will and other documents, a person can plan for the future, state how he or she wants his or her body handled after death, and much more. People of all income levels can take advantage of the benefits and protections available through a strong estate plan.
Sometimes, people think it's not important to review and change their estate plans if nothing major has changed in their lives. It's always prudent to review these documents occasionally to determine if adjustments are necessary. Divorce, death, remarriage and other circumstances merit changes in an existing plan. It is also smart to change beneficiary designations on certain types of accounts, such as retirement accounts, insurance policies and more.
Misunderstandings about estate planning can lead to complications down the road. A Tennessee resident will want to make sure he or she does not believe certain lies about this process that can lead to missteps in the planning process. It is smart to start this process with a complete assessment of one's individual case.