Busted! Don’t Believe These Estate and Business Planning Myths!
Thoughtful planning of your estate and business means preparing for the orderly and efficient transfer of assets in case of any eventuality. It will ensure your family is taken care of and your company remains viable. However, many individuals find estate and business planning confusing. This is often the result of misunderstandings and believing false information. As an attorney, Keith R. Romero Attorney at Law has come across many clients assuming that planning their business and estate is just for the ultra-wealthy or the very old. And believing these misconceptions cloud rational decision-making when it is most needed.
To help you steer clear of falsehoods like these, I have debunked three of the most widely believed myths about estate and business planning.
Myth 1: You don’t need a trust as an estate-planning instrument
I believe this myth exists because “trust” is an instrument used by “wealthy people.” Therefore, it is often believed to be “too expensive.” This is simply not true. If a person is middle-aged (over forty years), has kids, has real estate and retirement accounts, they really should be considering a trust. A trust does not need to be expensive. Price varies according to complexity. However, many don’t realize that trusts allow more control and provide for protections during incapacity. A trust is more expensive than a Last Will and Testament (LWT). But, an LWT still needs to proceed through probate and can actually be more expensive than the cost of setting up a trust.
Myth 2: As far as business planning goes, you don’t need a lawyer until a legal issue arises
Wrong! Get a lawyer involved in your business planning stage. During business planning, one of the most important things is setting up your business to minimize risk. Get a lawyer involved early (before you launch your business). Once a legal issue is identified or becomes a problem, it is more difficult (and expensive) to bring a lawyer in to deal with it. Having a lawyer involved at the outset really minimizes this occurrence.
Myth 3: All you need is a simple will
Everyone’s situation is different. A will does not account for incapacity (just death). If you suffer an illness or condition, you are not covered by a will. Most people’s personal situation is varied enough that a carefully drafted will or even trust with supporting documents (Power of Attorney, Living Wills, Health Care Directive) is necessary. Additionally, these need to be tailored to every individual’s needs and should bring into consideration advice from other professionals (like accountants, financial advisors, insurance people, and others).
If you’re looking to steer clear of more myths like these, reach out to Keith R. Romero Attorney at Law. As one of the most trusted attorneys and counselors at law in Albuquerque, NM, I have a firm grasp of the law and offer thoughtful and well-executed services to clients. As a strategist, planner, and negotiator, my goal and passion are to help people make the best-informed decisions for their lives, legacy, and loved ones. My services are available across Albuquerque, Rio Rancho, Bernalillo, Los Lunas, East Mountain Area, and Santa Fe, New Mexico.