In uncertain times, estate planning can be one of the most valuable tools in protecting your family and your future. Yet many people still underestimate its importance or dismiss it entirely.

Why? Because they think estate planning is something only the wealthy need, or something to worry about later in life. The truth is that estate planning is for everyone, regardless of age, health, or financial situation. By believing otherwise, you might not be getting the protection you need.

To set the record straight, we’ve compiled our answers to frequently asked questions, debunking common estate planning myths and misconceptions. Use it as a guide to better understand your options and take confident steps on your estate planning journey.

Why is Estate Planning Important?

Estate planning is the process of managing and distributing your assets, as well as handling your affairs, in the event of your incapacitation or death. It goes beyond just deciding who inherits your assets, but it’s about having a clear, legally binding plan that protects you and your loved ones in life and beyond.

Having a well-crafted plan matters because:

It gives you control. When you die or become incapacitated, state courts will decide what happens to your assets or who will make the decisions for you. With an estate plan, you retain control and stay in charge.
It protects your loved ones. An estate plan allows you to name guardians for your minor dependents and set up funds to provide for them. You can further protect your loved ones by leaving behind clear instructions, thus minimizing disputes among them.
It prepares for incapacity. With an estate plan, you can prepare for incapacity, not just death. You can set up powers of attorney and healthcare directives, which are crucial if you become unable to make decisions.
It saves time and money. With proper planning and the use of estate planning tools, you can minimize estate taxes and preserve more of your assets. You can also avoid probate and other legal procedures that delay the distribution of your assets to your beneficiaries.
It preserves your legacy. Even with you gone or incapacitated, a well-crafted estate plan ensures that you leave behind a lasting legacy—a testament to your hard work and wise decisions. Additionally, this legacy will benefit the people or causes you care about most.

FAQs: Estate Planning Myths and Misconceptions

Now that you understand the essentials of estate planning and its importance, let’s tackle these common myths head-on:

Q: Isn’t estate planning only for the wealthy?

A: No. As explained above, estate planning is primarily about control and protection, not just financial matters. You can plan for the uncertain future even if you have no large assets to protect. Estate planning is for anyone who wants peace of mind and a secure future for their family.

Even if you don’t consider yourself wealthy, you, like any other adult, are likely to have a home, car, retirement account, or life insurance. These assets are always worth protecting and must be managed properly in the event of an emergency. And if you are a parent of young children, estate planning becomes more crucial for securing their future.

Q: I’m young and healthy, do I really need an estate plan now?

A: Yes. While you are not likely to die or be incapacitated at a young age, an estate plan can still serve you at this stage of your life. It’s not limited to end-of-life decisions; it’s also useful for unpredictable events such as serious injury or illness. This is especially useful if you are exposed to dangerous working or living conditions; if you’re a firefighter or military member, for example.

For younger adults, an estate plan that includes documents such as a healthcare directive and a durable power of attorney (POA) can provide control and protection. Additionally, if you have a young family, naming guardians for children is one of the most important steps you can take.

Q: I already have a will, so am I all set?

A: Not entirely. A will is one of the basic tools of estate planning, and you should be proud to have one. However, a will may not be enough for your needs. For one, it doesn’t prevent probate, the lengthy court-presided process of managing and distributing your affairs.

Furthermore, a will won’t give you control over retirement accounts, life insurance, or similar assets with beneficiary designations. Also, a will is useless when you become incapacitated because it only takes effect upon your death. Once you’ve set up your will, you can add a trust, POA, or healthcare directives, adding gradually according to your changing needs and goals.

Q: When I die, won’t everything automatically go to my spouse and kids?

A: Not always. When you die intestate, meaning without a will or any form of legally binding estate instructions, state laws will dictate how your assets will be managed or distributed. These laws follow the standard rules of inheritance, such as considering spouses and children first. However, it doesn’t take into account unmarried partners and blended families.

Additionally, family dynamics and structure can undergo changes. In time, your wishes and personal instructions may no longer align with the standard rules. With proper planning, you can ensure that your estate will go to your spouse, kids, and other beneficiaries as you intended, not as the law dictates. By leaving clear instructions, your wishes will be followed, and you will prevent disputes among your loved ones over your inheritance.

Q: Aren’t trusts only for rich people?

A: No. This is one of the biggest misconceptions about trusts. Very few people know that a trust can benefit families of all income levels. A trust is one of the most helpful estate planning tools you can get.

Unlike a will, a trust avoids probate, reduces delays and expenses, maintains privacy, and provides protection for minor children or beneficiaries with special needs. A trust also allows you to issue instructions on how your assets are managed responsibly over time, rather than being handed over in one lump sum. A trust is versatile and flexible, as you can set one up according to your estate planning goals and update it as your circumstances change.

Q: If I do online estate planning for cheap, is it just as effective?

A: While we support online forms and cost-effective estate planning solutions, we advise using them with caution. Always read the fine print and consult with legal experts for verification. Consider also any state-specific laws and your personal circumstances.

In fact, this is why we provide many free estate planning documents, including:

You can always start with DIY documents, but if your situation is more complicated than you expected, it’s always better to be safe than sorry. Missing even a small but crucial provision or tax consideration can have major consequences. It can cost you more than you saved from the price of a properly drafted plan.

Q: I’ve made an estate plan, now what?

A: Estate planning is not a “set it and forget it” process, so the next step is to update your plan regularly. Life changes, and your plan should change with it.

Reaching major milestones, such as marriage, divorce, the birth of children or grandchildren, buying property, or relocating to a new state, should prompt you to review and update your legal documents. At a minimum, we recommend reviewing your estate plan every 3 to 5 years.

Estate Planning for Everyone by Rilus Law

Everyone has the right and responsibility to protect their family, reduce conflict, and ensure their wishes are honored upon their death. This is why we at Rilus Law believe that estate planning is for everyone, regardless of wealth or age.

Don’t let any myth or misconception keep you from achieving your estate planning goals. You can rely on us to provide you with the right information and guidance, empowering you to build a plan that truly works for you.

If your questions are not addressed in these FAQs, please don't hesitate to give us a call or send us an email. Ready to create your first estate plan or need help updating an existing one? Don’t wait until it’s too late. Schedule your free consultation with our team today!

Estate Planning FAQs: Common Myths & Misconceptions Explained