7 Estate Planning Myths That Could Destroy Your Legacy
When most people think about estate planning, they picture millionaires, retirees, or complicated legal documents.
The truth? We have handled successions for average people, young people and simple estates. Estate planning is for anyone who wants to make life easier for their loved ones.
Unfortunately, there are a lot of misconceptions about wills, trusts, and estate planning in general. These myths oftentimes cause people to delay planning until it is too late, leaving their families with unnecessary stress, expense, complexity and uncertainty.
Time to separate fact from fiction
Myth #1: “I’m Too Young to Need an Estate Plan”
One of the biggest mistake people make is assuming estate planning is something they’ll worry about later or get around to doing eventually.
We constantly tell clients that there is no crystal ball letting us know when someone is going to pass away. The reality is that every adult should have basic estate planning documents in place, regardless of age.
If you are over the age of 18 and have:
A bank account
A vehicle
A home
A retirement account
Children
A spouse or partner
You have an estate that needs a plan in place for distribution. Having a plan is not about expecting the worst — it’s about being prepared for the unexpected.
Myth #2: “I Don’t Have Enough Money to Need a Will”
You do not need to be wealthy to benefit from estate planning. Regardless of how liquid or valuable your estate is, it will still need to go through succession proceedings. Moreover, some of the most important estate planning decisions have nothing to do with the size of your bank account or value of your assets.
A will allows you to:
Decide who inherits your property and in what proportions
Name guardians for minor children
Plan for special needs family members
Choose who will administer your estate
Reduce confusion and family conflict
Whether your estate is worth $5,000 or $5 million, having a plan matters.
Myth #3: “Everything Automatically Goes to My Spouse”
Many married couples assume their spouse will automatically inherit everything. While Louisiana is a community property state and Louisiana law does provide certain rights for surviving spouses, the outcome may not always match your expectations.
Family dynamics, children from prior relationships, separate property, prenuptial agreements, and other factors can significantly impact what happens to your property after your death.
The safest way to ensure your wishes are honored is to put them in writing.
Myth #4: “A Will Avoids Probate”
Many people are surprised to find out that a will does not avoid probate, or succession as it is called here in Louisiana. Instead, a will provides instructions for the court to follow during succession proceedings.
If avoiding succession proceedings is one of your goals, you may need additional estate documents, such as a trust or beneficiary designations. Nevertheless, a will is still incredibly important — it is is important to understand what it does and does not accomplish.
Myth #5: “I Can Just Download Forms Online”
At first glance, online forms can seem convenient and inexpensive.
Unfortunately, online forms can create expensive problems in Louisiana succession proceedings. Estate planning laws vary by state, and Louisiana, being the only state in the United States that does not follow the English Common Law, has unique legal requirements that generic online forms often fail to properly address.
We have seen situations where:
Documents were not executed properly
Important provisions concerning forced heirship, which is unique to Louisiana, were missing
Assets were not properly transferred
Families ended up in court trying to interpret unclear language
What seems like an affordable shortcut today can become a costly headache for your family later.
Myth #6: “Once My Estate Plan Is Done, I’m Finished Forever”
Creating an estate plan is a huge accomplishment — but it isn’t necessarily a one-time task. We recommend to our clients that they review their estate plans annually. It does not mean that you have to update your estate plan annually, but you should re-familiarize yourself with it every year because updates may be needed in the event of major life changes, such as:
Marriage
Divorce
Birth of a Child
Adoption of a Child
Death of a loved one
Incapacitation of a loved one
Purchasing a home
Starting a business
Significant changes in finances
Changes in family dynamics
Even without major life events, it is a good idea to review your estate plan regularly to ensure it still reflects your wishes.
Myth #7: “My Family Knows What I Want”
Maybe they do. But without a legally valid will, courts cannot enforce verbal wishes in succession proceedings. Good intentions do not override Louisiana law.
When there are no clear instructions, such as an intestate succession without a will, families are often left guessing and the estate passes through the laws of intestacy. This can lead to disagreements, delays, hurt feelings, major legal fees and unnecessary court involvement.
Unfortunately, we have seen major court battles over very large and very small estates. One of the greatest gives you can leave your loved ones is explicitly written out clarity.
The Truth About Estate Planning
Estate planning is not really about money. It is about protecting the people you care about and making difficult times a little easier for your family by ensuring that your wishes — not Louisiana’s default rules — determine what happens to your legacy.
The good news is that getting started is usually much easier than most people expect.
Ready to Protect Your Legacy?
Whether you need a simple will or a more comprehensive estate plan, taking action today can save your loved ones significant stress tomorrow.
If you live in Metairie, Kenner, New Orleans or Covington, Louisiana we can help you create a plan tailored to your family, your goals, and your future.
Schedule a consultation today and download our free Estate Planning Checklist
Your legacy deserves more than myths and assumptions — it deserves a plan.
Legal Disclaimer:
The information provided in this blog is for general informational purposes only and is not intended as legal advice. Reading this content does not create an attorney-client relationship between you and Samantha Weidner Attorney and Counselor at Law, LLC. Laws change frequently and vary by jurisdiction, so you should not rely on this information as a substitute for legal advice from a qualified attorney licensed in your state. For advice regarding your specific situation, please contact our office directly.