Estate Planning Myths That Could Cost Your Family

Estate planning guides how assets may be distributed and decisions managed if you’re unable to act. Misunderstandings about wills, trusts, and beneficiary designations can expose families to probate delays, unintended heirs, and added expenses. Below are six pervasive myths, the potential impacts, and actions you can take to address them.

Myth 1: Only High-Net-Worth Individuals Need an Estate Plan

Anyone with personal property, real estate, retirement accounts, or digital assets may face an intestate distribution by state law. This can lead to unintended heirs, court-supervised probate, and additional costs.

Action Steps

• Compile a list of assets, accounts, and valuables.

• Prepare a simple will to designate beneficiaries and name an executor.

Myth 2: A Will Covers All Assets

Wills govern probate-estate assets only. Accounts with beneficiary designations, jointly titled property, and most digital assets typically bypass a will—and may go to default or state-appointed beneficiaries if forms aren’t updated.

Action Steps

1. Review and update beneficiary designations on life insurance, retirement plans, and annuities.

2. Consider a revocable living trust for real estate or investment accounts to potentially avoid probate.

Myth 3: Estate Planning Is Only for Older Adults

Young families, single professionals, and business owners also face capacity-and-guardianship risks. Without healthcare directives or powers of attorney, decisions may fall to courts or distant relatives.

Key Considerations

• Establish a durable power of attorney and healthcare proxy.

• Name primary and backup guardians for minor children.

• Revisit documents after marriage, birth, divorce, or business formation.

Myth 4: Joint Ownership Automatically Prevents Probate

Joint tenancy with rights of survivorship may transfer title at death, but it can also expose assets to co-owner claims, complicate future title changes, and trigger ancillary probate in multiple states.

Alternative Approach

• Use trusts and beneficiary designations for clearer control and distribution without adding co-owners.

Myth 5: Beneficiary Forms Override All Other Documents

Designations apply only to accounts you list. If a beneficiary predeceases you or no contingent is named, assets may flow back into probate.

Best Practices

• Conduct annual reviews of all beneficiary forms.

• Align beneficiary designations with your will or trust provisions.

Myth 6: Trusts Are Prohibitively Expensive

Affordable, customizable trust solutions exist online and through independent advisors. While setup carries a cost, avoiding probate expenses and preserving privacy may offset fees over time.

Considerations

• Compare setup fees versus estimated probate and court costs.

• Ask about spendthrift provisions to protect beneficiaries from creditors or poor money management.

Take the Next Step

Contact Patten Financial Group to explore a tailored estate planning review. Our independent, fiduciary-focused approach may help you identify gaps, clarify objectives, and coordinate with your attorney and tax professionals.

Schedule your complimentary discovery call today to discuss how a streamlined plan may align with your family’s needs.

Disclaimer: This material is for educational purposes only and does not constitute legal, tax, or investment advice. Past performance is no guarantee of future results. Consult your attorney or tax professional before making estate planning decisions.

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