Myths are spread from person to person and by the Internet. Correcting the myths, isn’t an easy task.
The world of the will and the trust has created some basic estate planning myths through the years. However, they can be corrected, according to TC Palm in "Common misconceptions about wills and trusts."
These myths include:
- If you have created a will, it is likely that your family will still need to go through probate court after you pass away. A will does not protect your estate from probate, as many people mistakenly believe. A fully funded revocable living trust is the most appropriate estate planning tool for probate avoidance.
- Even if you do not have enough assets for your estate to pay the federal estate tax, an estate plan is still needed. Many people think that estate planning is only for the wealthy. It is not.
- People think they should not put property into a revocable trust because that will limit what they can do with the property. This is not true either. If the trust is written properly, it can be amended and revoked easily by you as its creator.
- Another common mistaken belief concerns the administration of a revocable living trust, while its creator is alive and managing it. Many believe that by creating a revocable living trust, they will need to file a second income tax return for the trust. This is also false.
An estate planning attorney can answer any of your questions on wills and trusts and advise you on creating an estate plan that fits your unique circumstances.
Reference: TC Palm (May 1, 2018) "Common misconceptions about wills and trusts."