9 Biggest Misconceptions About Wills (& Why They’re Wrong)

More than two-thirds of Americans (68%) do not have a will, according to a 2021 study by Caring.com.¹ 

This is a shocking statistic, considering how crucial a will is for protecting your assets and ensuring your final wishes are carried out. Unfortunately, many people make costly assumptions about wills that prevent them from creating one. 

1. “My spouse will automatically inherit everything.”

This is one of the most prevalent misconceptions about wills. While your spouse may be entitled to a portion of your estate under state law, they are not guaranteed to inherit everything. If you want your spouse to receive the entirety of your assets, you need to explicitly state this in your will.

2. “I’m too young to need a will.”

Many people mistakenly believe that wills are only necessary for the elderly or those with significant assets. However, unexpected events can happen at any age, and having a will ensures your wishes are honored, especially in the event of incapacity or an untimely passing.

3. “My family already knows how I want my assets distributed.”

Assuming your family is aware of your wishes is a risky move. Without a legally binding document like a will, your assets may not be distributed according to your preferences. A will provides clarity and helps prevent family disputes after your death.

4. “Drafting a will is expensive.”

While hiring an attorney to draft a will can come with a cost, it’s an investment in protecting your assets and loved ones. In simple financial situations, you may be able to draft many documents yourself at no or low cost. Additionally, the cost of not having a will can be much higher, as your estate may be subject to lengthy and costly probate proceedings.

5. “I don’t have enough assets to warrant a will.”

No matter the size of your estate, a will is essential for ensuring your wishes are carried out. Even if you don’t have significant financial assets, a will allows you to specify how your personal belongings, such as family heirlooms or sentimental items, should be distributed.

6. “I can just add my children to my bank accounts.”

While adding your children to your bank accounts may seem like a simple way to transfer ownership, it can lead to unintended consequences. This action can subject the accounts to your children’s creditors and may even be considered a gift, with potential tax implications.

7. “I can write my will myself.”

DIY will kits and online templates are available, but they may not be tailored to your specific needs or state laws. Attempting to write your own will can lead to ambiguities, loopholes, and potential legal issues. Working with an estate planning attorney ensures your will is legally valid and accurately reflects your wishes.

8. “I can just update my will later.”

Life is unpredictable, and your circumstances can change rapidly. Putting off creating a will until “later” can be a costly mistake if you become incapacitated or pass away unexpectedly. It’s essential to have a will in place and to review and update it regularly as your life evolves.

9. “I don’t need to discuss my will with my family.”

Keeping your will a secret from your family may seem like a good idea, but it can lead to confusion and conflict after your death. Discussing your wishes with your loved ones, even if they don’t agree with every decision, can help prevent misunderstandings and ensure a smoother transition.

Source:
1. https://www.caring.com/caregivers/estate-planning/wills-survey/2021-survey/