Understanding the essential facts about estate planning is vital to making sure that your assets are protected and your wishes are followed. Making decisions based on misconceptions regarding estate planning can lead to financial frustrations or worse. Test your ability to discern fact from fiction when it comes to these common beliefs about estate planning:

Florida does not have state estate tax.

Fact – however, federal estate tax may still be levied. The current federal exemption is $5.43 million for an individual, and $10.68 million per couple.

Estate planning is only for individuals with assets totaling $10M or more.

Fiction – Estate planning is a valuable tool for individuals with asset portfolios of any amount. By means of strategic planning and advice from an estate planning attorney, the probate process can be simplified and asset administration expedited.

In the event that you’re unable to make medical or financial decisions, an estate plan can vest that authority with an advocate of your choosing.

Fact – Estate planning isn’t just for asset administration. It also can be a tool to transfer power of attorney if you become temporarily or permanently incapacitated.

The provisions of a will or trust take precedence over beneficiary designations on policies such as life insurance or retirement accounts.

Fiction – The beneficiary designations will be given priority. Therefore, it’s important to make sure that these designations are kept up-to-date and reflect any changes in your wishes or circumstances.

How did you do? If you found that estate planning accomplishes more than you previously thought, you’re not alone. Many people don’t recognize the power of estate planning, or fail to put a plan in place. Seek the advice of an estate planning attorney today and make sure you have all the facts – and no fiction!