Wills are not a new legal concept. People have been providing written instructions about their legacies for centuries. However, misconceptions about wills are relatively common. People may believe outright inaccurate information about the creation and use of wills when estate planning.
The three common myths debunked below may negatively impact the estate planning process. People who learn the truth may be in a better position to draft effective documents that protect them and their loved ones.
Myth one: Wills are the only documents people need
Wills are testamentary instruments. They allow an individual to appoint a personal representative. They can name a guardian to care for their minor children. They can also designate specific resources for individual beneficiaries in their wills.
While people can accomplish many estate planning goals with a will, a will is not the only form of protection that they need. Most people also need the protection of advance directives. They need to plan for an emergency, not just death. In some cases, people may want to augment a will with a trust that provides more control and provides special forms of protection.
Myth two: Handwritten wills are the best option
Many people believe that writing out their own wills is the most effective estate planning solution. After all, it is free, and they can perform the entire process at home whenever they wish.
However, there are several issues with handwritten or holographic wills. Those issues include disputes about whether the document is legitimate. People may not recognize the handwriting of the testator, especially if it is changed because their health has declined.
People writing their own wills could very easily make mistakes, such as failing to have witnesses sign the document. They may also store the will in a location where no one finds it until long after the completion of a state administration. Working with an attorney to draft a will helps ensure that the document is valid and that people can locate it when the time comes.
Myth three: Wills bypass probate court
Some people believe that any assets distributed via their wills do not have to pass through probate court. That isn’t actually true. The personal representative following the instructions in a will is subject to probate oversight.
The assets listed in a will are vulnerable to creditor claims or Medicaid estate recovery efforts. They also count toward the total value of the estate for the purpose of calculating estate taxes. Wills do not allow people to bypass probate court, but they do protect people from the application of intestate succession laws.
Starting an estate plan by drafting a will and then expanding it based on personal needs is a great way to begin preparing for the inevitable. People often need to sit down and discuss their preferences and concerns at length to establish the strongest estate plans possible.