Bust these four estate planning myths with the help of your Millman Law Group attorney.
When it comes to planning your estate, misinformation can lead to costly mistakes for you and your loved ones. Many people assume they understand how inheritance and estate laws work, until they discover that what they thought was true is actually an estate planning myth. Below, we’re busting four of the most common estate planning myths so you can make informed choices and protect your family’s future.
Myth #1: If I Don’t Have a Will, My Spouse Automatically Gets Everything
This is one of the most widespread estate planning myths, and unfortunately, it’s not true in most states. While you might want your spouse to inherit all your assets, state law—not your personal wishes—decides what happens if you pass away without a will.
Depending on where you live, your spouse may be entitled to share your estate with your children or receive only a fixed percentage, such as one-third.
Creating a legally valid will ensures that your assets are distributed according to your wishes, rather than default state laws. A will allows you to specify who inherits what, name guardians for your children, and grant your spouse the control you intend them to have.
Myth #2: Having a Will Means You Can Avoid Probate
This is another common misconception. While a will is a crucial part of your estate plan, it does not bypass probate. In fact, your will must go through the probate process to be validated by the court before any property is distributed.
Probate can take months or even years, depending on the complexity of your estate and the laws of your state. It also becomes a public process, meaning your assets and beneficiaries become part of the public record, something many families prefer to keep private.
To avoid probate, you’ll need more than just a will. Many individuals choose to create living trusts, which enable assets to be transferred privately and efficiently to their beneficiaries without court involvement. A trust-based estate plan keeps your affairs confidential and minimizes delays for your loved ones.
Myth #3: If I Don’t Have a Will, the State Will Take All My Assets
States generally only take ownership of someone’s assets when no living relatives can be found, a situation known as escheat.
If you pass away without a will, your assets will be distributed to your family members according to a legal order of kinship. That could include your spouse, children, parents, siblings, or even more distant relatives. However, if you relied on Medicaid or other government benefits, the state may attempt to recover some costs through what’s known as a Medicaid estate recovery program.
While it’s unlikely the state will take everything, dying without a will still creates unnecessary complications and uncertainty. A well-drafted estate plan ensures your assets go to the people and causes you choose, not whoever happens to be next in line under state law.
Myth #4: My Family Has to Pay Off All My Debts
This myth is only partly true. Your loved ones do not personally inherit your debts, but your debts are paid from your estate before any assets are distributed. That means the more debt you leave behind, the less your heirs will ultimately receive.
If your estate doesn’t have enough assets to cover your debts, your family isn’t required to pay them, unless they are legally responsible, such as a spouse who co-signed a loan or shared a joint account.
To protect your family, it’s important to have a plan in place that clarifies which debts exist and how they’ll be managed. This might include setting aside specific assets, maintaining adequate life insurance, or reducing liabilities where possible.
Avoid the Pitfalls of Estate Planning Myths
What you don’t know about estate planning can hurt the people you love most. Relying on hearsay or assumptions can lead to confusion, court battles, or financial strain for your heirs.
The best way to avoid these estate planning myths is to work with an experienced estate planning attorney. A knowledgeable professional can explain how your state’s laws apply, help you create the right combination of documents—like wills, trusts, and powers of attorney—and ensure your wishes are clearly protected.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.