The process of estate planning is often misunderstood. Reviewing some of the misconceptions can help you avoid mistakes when it is time to create your will, power of attorney and other important documents.

These are the facts behind common myths about estate planning in Colorado.

Only ill or elderly individuals need a will

In fact, it is never too early for you to make an estate plan if you own assets or have a child. Even young people should have a basic will that accounts for their home, car and retirement savings. Parents must establish a legal guardian for their children in case they can no longer care for them.

Estate planning is only for the wealthy

While planning your estate does account for the fate of your property after you die, it also serves many other purposes regardless of your net worth. In addition to naming a guardian for a minor child as mentioned above, your estate plan can also help your heirs avoid legal and financial complications after you die, reduce their tax burden, document the type of medical care you want to receive after a serious illness or accident, name a trusted person to distribute your property, and name a trusted person to make medical and financial decisions on your behalf if you cannot do so.

All estates go through probate

In fact, Colorado only requires probate for estates that exceed $50,000 in value, not including assets you own jointly with another person such as real estate. If you own real estate alone, however, the state requires probate regardless of the estate value.

Starting the conversation about estate planning with your family can help you make decisions that will protect future generations.