When it comes to planning for the future, wills play a critical role in ensuring your wishes are honored. However, there’s a lot of misinformation out there that can make the process seem more daunting than it actually is. In this blog, we’re going to clear up some of the most common misconceptions about wills, thanks to a simple, friendly approach that makes even complex legal matters understandable.
1. Only the Wealthy Need Wills
Many people believe that wills are only for the wealthy, but this isn’t the case. Regardless of the size of your estate, a will is a crucial document for expressing your wishes after you pass. It’s not just about distributing assets; it’s about making your desires known and legally binding, from guardianships for your children to specific bequests of personal items. Without a will, the state decides how to distribute your assets, often in ways you wouldn’t expect or want.
2. Wills Are Too Expensive to Create
The perception that drafting a will is overly expensive can deter many from creating one. However, this couldn’t be further from the truth. While costs vary, there are options for every budget, from online templates for basic wills to more comprehensive legal advice for complex estates. The cost of not having a will, though, can be far greater, leading to potentially expensive and prolonged probate processes that can significantly diminish the estate’s value.
3. Only the Elderly Should Worry About Wills
Another common myth is that only the elderly need to think about wills. Life is unpredictable, and having a will is crucial at any age for adults, especially those with dependents or assets. It ensures that your wishes are known and can be carried out in the event of an unexpected tragedy, providing peace of mind and security for you and your loved ones.
4. Everything Automatically Goes to Your Spouse
It’s a widespread belief that in the absence of a will, everything you own automatically goes to your spouse. While many states do have laws that favor spouses, these laws can be complicated, and outcomes can vary dramatically depending on your location, the nature of your assets, and your family structure. A will removes any ambiguity, ensuring your spouse inherits exactly what you wish them to have without leaving anything to chance.
Furthermore, relying on automatic succession laws ignores the nuanced dynamics of modern families, including stepchildren, ex-spouses, and cohabiting partners. A will allows you to include or exclude individuals as you see fit, rather than being bound by a one-size-fits-all legal formula. It’s a method to ensure your true intentions are followed, providing clarity and preventing potential conflicts among those you care about.
5. Wills Aren’t Necessary If You Have a Living Trust
Some assume that having a living trust negates the need for a will. While a living trust can be a powerful tool in estate planning, particularly for avoiding probate, it doesn’t cover everything. Assets not included in the trust—for example, those acquired later and not added—would still be subject to state laws if there’s no will. A pour-over will can work in tandem with a trust, directing any overlooked assets into the trust upon your death.
6. You Can’t Change a Will Once It’s Made
Contrary to what some might think, a will is not set in stone after it’s been created. Life changes—marriages, divorces, births, and deaths—mean that what made sense at one time may not make sense down the road. It’s not only possible but advisable to update your will to reflect these changes. Ensuring your will is current is key to having your final wishes accurately honored.
7. You Don’t Need a Lawyer to Create a Will
While it’s true that you can create a will without a lawyer, using professional legal advice is often beneficial, especially for complex situations. A legal professional can ensure your will complies with state laws, advise on potential issues, and draft a document that accurately reflects your wishes, potentially saving your heirs time, money, and stress in the probate process.
8. Wills Cover Everything You Own
A common misunderstanding is that a will can dictate the distribution of all your possessions. In reality, certain assets—like life insurance proceeds, retirement accounts, and jointly owned property—usually pass outside of a will, directly to named beneficiaries or co-owners. Understanding what a will can and cannot control is crucial for effective estate planning.
9. Digital Assets Don’t Need to Be Included in Wills
In our digital age, online accounts and digital assets are often overlooked in estate planning. However, including these in your will can prevent them from becoming inaccessible after you’re gone. Specifying how you want your digital assets handled, from social media profiles to digital currencies, ensures they’re dealt with according to your wishes.
10. A Will Guarantees No Family Disputes
It’s hopeful to think that a will can prevent all family disputes over your estate, but this isn’t always the case. While a clearly written will can significantly reduce the likelihood of conflicts, it’s not a guarantee. Communication with your loved ones about your wishes, along with a well-drafted will, is the best approach to minimizing disputes.
