A will is one of the most crucial parts of estate planning as it determines how your assets will be distributed after your death. Despite its importance, a troubling trend has emerged: a significant decline in Americans creating wills. Only 32% of Americans had a will in 2024, a decrease from the previous year.
To address this concerning statistic and clear up common misconceptions, let’s examine some prevailing myths about wills.
Only Wealthy People Need Wills
A will is a valuable tool for estate planning, irrespective of a person’s financial stature. People from all walks of life can benefit from creating a will. It ensures your assets are split up according to your vision, safeguarding your loved ones from potential disputes. A well-crafted will can also save your family time and money in the long run by streamlining the probate process.
A Will is the same as a Living Will
While both are essential legal documents, a will and a living will serve entirely different purposes. It helps you understand how your assets will be distributed after your death. In contrast, a living will expresses your wishes regarding medical treatment if you become incapacitated. It’s crucial to have both documents in place to plan for your future comprehensively.
Your Spouse Automatically Inherits Everything
The property is distributed as per the estate law after death. While many states have laws granting spousal inheritance rights, automatically assuming your spouse inherits all your assets is incorrect. A will empowers you to determine the exact distribution of your assets, including provisions for children from a previous marriage or other beneficiaries. Without a will, your spouse might not inherit everything you intended.
You Can Change Your Will Orally
Oral declarations about how you want your assets distributed are legally unenforceable. A will must be a written document to be considered valid. Any modifications will need to be made in writing through a legal document called a codicil. Verbal promises about asset distribution are not legally binding and can cause disputes among heirs.
Once You Make a Will, You Can’t Change It
Your life circumstances can change over time, and your will should reflect these changes. You have the flexibility to modify your will as often as necessary. A codicil is a formal document used to amend an existing will. Constant reviewing of your will ensures accurate division of your assets according to your wishes if and when they change with time.
Your Children Will Automatically Inherit Your Property
While many parents wish to provide for their children, automatic inheritance isn’t guaranteed. A will gives you control over how your assets are divided among your beneficiaries, including your children. You can specify the exact amount or conditions for inheritance or choose to leave assets to other individuals or organizations.
If You Don’t Have a Will, the Government Gets Your Assets
This is a common misconception. If you die without a will (intestate), your state’s laws will determine how your wealth is distributed. These laws might not align with your wishes, potentially leading to unintended consequences for your loved ones. The creation of a will ensures your assets are split according to your plans.
A Handwritten Will is Not Legal
Typing wills and those generated through witnesses are commonly considered to be safer, but a handwritten will can also be valid in certain jurisdictions. However, there are specific requirements that must be met for a holographic will to be legally recognized. Consulting with an attorney can help ensure your handwritten will complies with your state’s laws. However, do note that the validity of holographic wills varies by state.
You Can Make a Will in Any Condition
While mental capacity is essential for creating a valid will, the legal standard for determining a sound mind is generally lower than for other legal documents. If there are concerns about your mental state, challenges to the will might arise. It’s advisable to create your will when you are of sound mind to minimize potential disputes.
Your Executor Can Inherit Whatever They Want
An executor is the person who is hired to manage your estate and to distribute assets according to your will. They are not entitled to inherit more than what is specified in the will. Clearly outline the executor’s role and inheritance in your will to prevent misunderstandings and potential conflicts.
Pets Can’t Be Included in Wills
Pets are often cherished family members, and their well-being should be a priority in estate planning. Designating a caregiver in your will is a good start. Still, it’s essential to consider potential challenges and explore additional options to secure your pet’s future.
Creating a Will is Expensive and Complicated
While taking legal advice is considered the norm during the creation of a will, the process isn’t always as costly as perceived. There are online resources and DIY will kits available to assist you. However, understanding your state’s specific laws is crucial for creating a legally valid will. Investing time and effort in creating a will can provide peace of mind and protect your loved ones from potential challenges in the future.
Digital Assets Aren’t Part of a Will
In today’s digital age, many people overlook the importance of including digital assets in their wills. Digital assets include everything from social media accounts and online banking to cryptocurrencies and digital photos. With only 26% of Americans having an estate plan, it’s evident that even fewer have addressed the management of their digital assets. Failing to include these assets can lead to complications for your heirs, who may struggle to access or manage your online presence after your death.
