5 Common Estate Planning Myths That Could Cost You Everything

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Estate planning is one of those topics most people prefer to avoid thinking about. Unfortunately, this avoidance often leads to misconceptions that can have serious consequences for you and your loved ones. As estate planning attorneys at Bayside Law, we encounter these myths regularly in our practice. Let's set the record straight on five of the most persistent misconceptions.

The first myth we frequently encounter is the belief that "I'm too young to need estate planning." Many people believe estate planning is only for the elderly or those nearing retirement. The reality is that life is unpredictable, and accidents or sudden illness can happen at any age. If you're over 18, own any assets, or have people who depend on you, you need basic estate planning documents. Without a will or other planning documents, the state decides how your assets are distributed and who makes medical decisions if you become incapacitated. This applies whether you're 25 or 85.

Another common misconception is that "my assets aren't worth enough for estate planning." This myth assumes estate planning is only about distributing wealth. In reality, estate planning encompasses much more than just asset distribution. It includes designating guardians for minor children, making healthcare decisions, and ensuring your wishes are followed regardless of your net worth. Even if your primary asset is a modest home or retirement account, proper planning can save your family thousands in probate costs and months of legal complications.

Perhaps one of the most dangerous misconceptions is believing that "having a will means my family won't go through probate." A will actually guarantees that your estate will go through probate – it simply provides instructions for how the court should distribute your assets. Probate can be time-consuming, expensive, and public. To avoid probate, you need additional planning tools like trusts, beneficiary designations, or joint ownership arrangements. The right strategy depends on your specific circumstances and goals.

Many people also mistakenly believe that "estate planning is only about avoiding taxes." While tax planning can be an important component of estate planning, it's far from the only consideration. For most families, the primary goals are ensuring smooth asset transfer, protecting minor children, planning for incapacity, and maintaining privacy. Under current federal law, estate taxes only affect estates worth more than $12.92 million per person (as of 2023). Even if taxes aren't a concern for your estate, you still need planning to address the other critical issues.

Finally, there's the myth that "once I create estate planning documents, I'm done." Estate planning isn't a "set it and forget it" process. Life changes constantly – marriages, divorces, births, deaths, career changes, and moves to different states all impact your estate plan. Your documents should be reviewed every three to five years or after any major life event. Additionally, laws change over time, which can affect the effectiveness of your existing plan. Regular reviews ensure your estate plan continues to serve your evolving needs and complies with current regulations.

Don't let these common myths prevent you from protecting yourself and your loved ones. Estate planning provides peace of mind and ensures your wishes are carried out, regardless of your age, wealth, or family situation.

At Bayside Law, we help clients navigate the complexities of estate planning with personalized strategies that fit their unique circumstances. Schedule your appointment to discuss how we can help you create a comprehensive plan that protects what matters most to you.

This blog post is for informational purposes only and does not constitute legal advice. Every situation is unique, and you should consult with a qualified estate planning attorney to discuss your specific needs.