Misconception: If it’s published on the internet, it must be true.

In today’s world, with so much information out there, it’s easy to fall into the trap of misinformation. On January 25, we celebrate Opposite Day, an opportune day to shine a spotlight on common misconceptions or myths surrounding estate planning. In the spirit of challenging assumptions, I’d like to debunk five myths that often cloud the understanding of this critical aspect of financial planning.

Myth: A Will Avoids Probate

One of the most common myths is that many people believe that having a will is sufficient to avoid probate. In reality, the only bulletproof way to bypass probate is by structuring your assets to pass to others by other means, such as beneficiary designations, joint tenancy, or a trust. While a will can play a crucial role in outlining your wishes, it doesn’t automatically sidestep the expensive and time-consuming probate process.

Myth: There’s No Need for an Estate Planning Lawyer if You Use Beneficiary Designations

Some believe that if everything passes through beneficiary designations, consulting an estate planning lawyer is unnecessary. However, this overlooks potential pitfalls. If named beneficiaries predecease or die simultaneously, it can trigger probate. Additionally, an estate plan involving a trust can provide solutions to such contingencies, ensuring a smoother transfer of assets.

Myth: Financial Affairs Must Be “In Order” Before I See an Attorney

Waiting until your financial affairs are perfectly organized before consulting an estate planning attorney is a common misconception. In reality, a preliminary list of major assets and an outline of important relationships is sufficient for an initial meeting. Taking just 10 minutes to jot down key assets and significant people in your life lays the groundwork for a constructive discussion with me.

Myth: Having a Trust Guarantees Smooth Sailing

Another myth is that once you have a trust, you’re all set. However, laws change, and not all trusts are created equal. Some trusts may inadvertently introduce income tax issues, especially after the first spouse’s death. Regular consultations with an estate planning attorney can address the evolving legal landscape and rectify potential tax problems, ensuring the trust remains effective and aligned with your goals.

Myth: If I Have a Trust, There is No Need for Attorney Involvement After My Passing

Contrary to the belief that a trust renders an attorney unnecessary after the grantor’s passing, there are crucial post-mortem responsibilities. Legally required notices, effective communication with beneficiaries, and adherence to specific procedures are essential tasks that require legal advice. Many of these tasks can be undertaken by your successor trustee, with guidance from an attorney. If your successor trustee does not set off on the proper path, it can result in missteps in administration which can lead to disputes between beneficiaries, and personal liability to your successor trustee.

While avoiding probate is a significant advantage, seeking legal counsel ensures the proper administration of a trust and minimizes the potential for disagreements among beneficiaries. Estate planning is a dynamic process that extends beyond drafting documents, requiring ongoing attention and professional insight to adapt to changes in both the law and your personal circumstances.

As an experienced estate planning attorney, I’m here to help you navigate the complexities, ensuring your wishes are honored and your legacy is preserved with clarity and precision. I wish you and your family a happy new year — here’s to a successful, healthy, and fruitful 2024!