Don't Fall for Common Misconceptions: Estate Planning is for You

By Daysi Alonzo

As first-generation Latina lawyers and the daughters of hardworking immigrant parents, the inspiration behind our estate planning practice stems from our personal experiences. Having endured the anguish that resulted from unexpected incapacity and deaths in our families, our goal is to empower our community with the legal knowledge necessary to protect their legacy and organize their affairs without the same stress and duress that we experienced.

Given the crucial role that an estate plan plays in maintaining stability in stressful times for you and your loved ones, we want to address—and debunk—four common myths that we have heard about estate planning.

Myth # 1: Estate planning is only for people who are wealthy.

There is a misconception that a person of modest means does not need an estate plan because they do not have enough to protect. Estate planning is the process of putting in writing what you want to happen to your belongings after your death. It can also protect your health and financial stability while you are alive. The resulting legal documents that make up your estate plan can therefore ensure that you, your family, and hard-earned possessions are protected before and after your death. The estate planning process varies for each person. So, while it may be less complicated for someone of modest means to create an estate plan, it is not any less important for them and their well-being.

Myth # 2: Estate planning is only for people who are retiring.

There is a misconception that an estate plan is only useful to someone who is older and within the retirement age. While it can be uncomfortable and overwhelming to talk about or even think about dying, life is unpredictable—health issues and accidents happen to people of all ages. Having an estate plan in place is crucial, especially one that expresses your financial and healthcare wishes not only following your death but also during a period of mental incapacity. It is never too early to start planning. You can create your estate plan as soon as you become a legal adult, though you should revise it every three to five years to keep up with major life events. No one wants to think about the end of their life but creating an estate plan can provide security and comfort to you and your loved ones.

Myth # 3: Estate planning takes away ownership over your possessions, money, property, and other valuables.

There is a misconception that people lose ownership of their belongings when they document who their things should go to in their estate plan. However, having an estate plan that expresses your wishes ahead of time and includes detailed instructions about who things go to and when provides you with the peace of mind that your belongings will be distributed on your terms after your death and during incapacity. Your estate plan can also help your loved ones avoid the mental and emotional burden of determining what you would have wanted, as well as any unnecessary conflict that can happen without clear instructions. Having an estate plan allows you to make difficult decisions while you are still alive and able to make them, thereby avoiding outcomes that you do not expect or desire. It gives your family less to worry about when you are gone and the ability to honor your wishes.

Myth # 4: Estate planning is too expensive. 

There is a misconception that the upfront cost of an estate plan is not worth the investment. If you die without an estate plan, your loved ones will need to go through probate. Probate is a process administered through the state courts where a judge applies state laws to determine what happens to your belongings. Decisions by the state court might not align with your beliefs, wishes, or family’s needs. Probate is a lengthy process, taking anywhere from six months to two years. It is also costly, with a $435 initial filing fee and an average total cost of $20,000 in California. Aside from being financially expensive, it can also take away a lot of energy and peace of mind from your loved ones amid an already stressful time of grief and mourning. If there is something of value that you can transfer to someone after your death, create an estate plan to save your family stress, time, and money in probate court.

Estate planning is important for legal, financial, and personal reasons. At Cid & Macedo, Inc., we help you create a comprehensive estate plan to protect your families’ future by collaborating with and guiding you through difficult but important decisions. If you are interested in working with us, schedule a consultation here. We provide our services in English and Spanish.