Setting The Record Straight: Why Estate Planning Isn’t Only For The Wealthy (And Other Myths)

Estate planning often gets misrepresented in movies and media, seen as the domain of ultra-rich or old-money families. But the truth is much more complex and nuanced. Nearly every family can benefit from at least some form of estate planning. And this is only the first of several incorrect assumptions and myths that need to be corrected, as this article shall explain, including.

• Why you need to do at least some estate planning even if you are still in your 20s or 30s.
• Why you still need a will and other estate planning documents even if you are married with kids.
• One surprising common Texas myth about estate planning and probate.

Myth #1 – Estate Planning Is Only For The Wealthy

False. Anyone who has assets needs to plan. In my time as an estate planning and probate attorney in Texas, I have seen bigger fights over $10,000 estates than I have over $10 million estates.

Sometimes, the worst part about not planning with smaller estates is that it can lead to higher costs. As a result, the bulk of the estate can go to administration costs rather than to your family and loved ones if you do not plan appropriately.

Myth #2 – There Is No Point In Worrying About Estate Planning Until Middle-Age

I wish that were true, but unfortunately, it is not. Some of the most complicated probate cases I have had to deal with occur when young people die unexpectedly, especially if they have underage children.

Younger parents in their 20s and 30s are naturally more likely to have underage children than middle-aged parents, making estate planning perhaps even more important for them.

This is because things get more complicated when you have children involved. For example, when you don’t have any estate planning, even if you only have a medium or small estate, such as just one house, young children cannot technically own these things.

Inevitably, unless you plan ahead for the possibility, the court will have to be involved in controlling your estate until your children come of age.

Myth #3 – I Do Not Need A Will If I Am Married, As My Assets Will Automatically Be Passed On

Partially true. Technically, everything passes automatically, even if you do not have a will. The question is, do you trust the state to decide who receives it, in what percentages and in what form?

The real reason to create a will and other estate planning documents is not to ensure that things will be passed on but to have any degree of control or say in how they are passed on. If you prefer to make your own decisions, then you should not leave such important decisions up to the state.

That said, spouses do not automatically inherit in many situations in Texas. Similarly, children who are underage cannot own anything. Therefore, an estate worth $5,000 could quickly turn into an expensive $35,000 probate because of the court interventions required.

As a result, even if you are just concerned about leaving things for your spouse or children, working with an estate planning lawyer can ensure they are bequeathed as cheaply and simply as possible.

Attorney Farren Sheehan is a meticulous Texas estate planning lawyer who has helped countless individuals and families just like yours set up protections for their loved ones. She has decades of experience helping Texans of all stripes correct errors and misunderstandings in their estate plans and seen what happens when they do not.

Is your estate plan built on misconceptions? Contact Farren Sheehan today to schedule an initial consultation to discuss your estate plan.

Myth #4 – I Do Not Need To Update My Estate Plan In Texas After A Certain Point

Possibly true. If there are no changes in how you want to pass things down, and there are no changes in the law, then you might not need an update.

That said, it is a good idea to regularly come in, and you do not need to have any changes made. Your attorney and you can go over what your goals are, what you want from the distribution plan, and all applicable laws.

As long as your will still meets those requirements, you will not need to spend a penny on updates, and if it does not match, you will be glad you checked and updated it. Therefore, it is always good to pull your will or other estate planning documents out every five to seven years and verify them with an attorney.

Myth#5 – Making An Estate Plan Is Too Complicated Or Costly To Be Worth It

No one wakes up on a beautiful day thinking, why not write a will today? It is not something cheerful and happy; unfortunately, it is part of our reality. The older we get, the more we have to face that reality.

If it helps, think of it as an umbrella. Bringing an umbrella is an extra cost, and it might be cumbersome, and the chances it actually rains when you have it with you are small. But if you leave your umbrella in the car, you can be certain it will rain on you, and the consequences of that rain will be far worse.

When it comes to making a plan in advance, just remember that you are doing it to protect your family. It is a gift to them. A small expense now can provide them a great deal of security later and spare them costs if you fail to plan appropriately.

Bonus Myth – One Surprising Mistake Texans Believe About Estate Planning

I am constantly surprised by how many Texan families I meet who believe that if you have a will, your estate does not have to go through probate. The truth is nearly the exact opposite.

A will only has any legal authority when it has been admitted to probate and gone through the probate administration process. But people often think that writing the will is all they need to do. They then fail to probate them, in which case things can go terribly wrong if they wait too long to do so.

Have you made your estate plan? Did any of these myths come as a surprise?

For more information on Why Estate Planning Isn’t Only For The Wealthy And Other Myths, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (512) 355-0155 today.