There are inheritance planning myths that have been in circulation for years. Some people buy into them, and their loved ones pay the price in the long run. In this post, we will look at some of these myths so you can steer clear of misconceptions.
Estate planning is only necessary for senior citizens.
We will use two words to dispel this myth: Kobe Bryant. The former Laker great was just 41 years old when he passed away, and his daughter and other young people were also victims of the tragedy.
You never know what the future holds, and people of all ages pass away each and every day. As soon as you are a self-supporting adult, estate planning should be on your radar. When you have a partner and/or children, inheritance planning becomes an absolute must.
A will is all you need when you plan your estate.
Far too many people equate estate planning to the creation of a simple will. Yes, you can use a will to state your final wishes regarding asset transfers. However, this is not the only option, and there are other considerations. Such as a will only goes into effect when you die.
Trusts are only useful for multimillionaires.
This is another myth that leads many people astray. High-net-worth individuals who are exposed to the federal estate tax use certain types of trusts to gain tax efficiency. However, there are trusts that are very useful for people who do not reside in the financial stratosphere.
For example, there is the revocable living trust. With this type of trust, you act as the trustee while you are living, so you maintain complete control of the assets. As the name would indicate, you can revoke the trust if you want to, so there are no risks.
After your death, the successor trustee that you designate will distribute assets to the beneficiaries according to your wishes. These distributions would not be subject to probate. This is a costly and time-consuming process that would be necessary if you use a will to transfer assets.
This is just one example, but there are many tools in the estate planning toolkit. Trusts can be used to satisfy targeted objectives, and you don’t have to be extremely wealthy to use them.
Things take care of themselves if you don’t have an estate plan.
Intestacy is the condition of dying without any estate planning documents. Under these circumstances, the probate court would supervise during the estate administration process.
This process is especially complicated when there is no will. The court will appoint a personal representative to administer the estate, and all final debts will be paid while the estate is in probate.
Ultimately, the assets that remain after debts are paid would be distributed under the intestate succession laws of the state of California. If it comes down to this, people that you would never have left out could be disinherited or shortchanged.
You can plan your estate using DIY templates you buy online.
Technically, you can in fact create legal documents using do-it-yourself boilerplate templates. But ask yourself this question: Would you use a bargain-basement DIY contract to sell your home or business?
When you plan your estate, you are preparing to transfer everything you have accumulated to the people you love the most. This is a rather important endeavor, and rolling the dice with a DIY download may not be a very good idea.
Take action today!
When you engage with our firm, you can rest assured that you will be working with sound information when you make your decisions. Ultimately, you will emerge with a custom-crafted plan that is ideal for you and your family.
You can call us at 707-769-9975 to schedule a consultation at our Petaluma, CA estate planning office, and you can use our contact form if you would rather send us a message.
- What Is a Living Trust? - August 3, 2026
- A Basic Guide to Trusts in Estate Planning - July 31, 2026
- Don’t Outlive Your Money: Planning for Longevity Risk - July 27, 2026
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