When it comes to estate planning, misinformation often leads people to make costly mistakes that leave families unprepared and vulnerable. At Lauenstein Law Firm, we often see clients who have delayed planning or used incomplete documents because they believed one of these common myths.

Below, we break down three widespread misconceptions about estate planning, explain the truth behind them, and outline the right steps to take so you can protect your loved ones and your legacy.

Myth 1: “I’m not wealthy, so I don’t need an estate plan.”

Many people think estate planning is only for the rich, but it is actually about control, not wealth. An estate plan ensures that your wishes are carried out if you pass away or become incapacitated, no matter the size of your estate. Without a plan, state law decides who inherits your property, which may not align with your intentions. Even modest estates can face delays, disputes, and unnecessary expenses when there is no will or power of attorney in place.

A basic estate plan typically includes a will, a power of attorney for financial matters, and advance healthcare directives. Together, these documents allow you to name decision-makers, direct how your assets will be distributed, and spare your loved ones from the stress of making difficult choices without guidance. The reality is that nearly every adult can benefit from estate planning, not just those with significant assets.

Myth 2: “A will covers everything I own.”

This is one of the most persistent misunderstandings about estate planning. A will only governs assets that pass through probate. Many assets—such as retirement accounts, life insurance policies, and jointly owned property—pass directly to the beneficiaries listed on those accounts or to surviving owners, regardless of what your will says.

This creates a real risk if you update your will but forget to update your beneficiary designations. For example, if an ex-spouse is still listed on your retirement account, they could inherit the funds even if your will leaves everything to your children. Similarly, if you create a trust but fail to transfer ownership of certain assets into it, those assets might still go through probate.

The solution is to coordinate your will, beneficiary designations, and any trusts so they work together. Reviewing and updating all designations after major life events—such as marriage, divorce, or the birth of a child—is essential to keeping your plan effective.

Myth 3: “Trusts are only for the wealthy.”

Trusts often have a reputation for being tools only used by high-net-worth families, but in reality, they can benefit many people. A revocable living trust, for example, allows your assets to transfer to your beneficiaries outside of probate, saving time and preserving privacy. This can be especially valuable if you own property in multiple states, have minor children, or want to control when and how your beneficiaries receive their inheritance.

While trusts require more upfront planning than a simple will, they can prevent delays, reduce court involvement, and in some cases, offer creditor or tax protection. For families with unique needs—such as beneficiaries with disabilities or concerns about creditors—specialized trusts can be customized to provide long-term protection and management of assets.

The key is to speak with an experienced wills and trusts attorney who can help you determine whether a trust aligns with your goals. For many families, the benefits far outweigh the initial costs or complexity.

Final Thoughts

Estate planning myths often lead to procrastination, mistakes, or unnecessary expenses that can easily be avoided with the right guidance. By understanding how estate plans really work—and working with an experienced wills and trusts attorney—you can make informed decisions that protect your family and your legacy.

If you would like help creating or updating your estate plan, Lauenstein Law Firm is here to guide you through the process with clarity and care.