Lori Woodward | Feb 18 2026 16:00
Estate planning is often surrounded by confusion, especially when it comes to how trusts work, what an estate plan actually covers, and the right way to handle disinheritance. Misunderstandings in these areas can lead to costly mistakes and unintended consequences. Below, we break down several widespread myths and explain the truth behind them so you can approach your estate planning with clarity and confidence.
Myth: Setting up a trust immediately protects your assets
A frequent misconception is that the mere act of creating a trust automatically shields your assets. In reality, a trust only does its job when it’s properly funded. This means you must formally transfer your property, accounts, and other holdings into the trust. Without this crucial step, your assets remain vulnerable, and your trust sits empty — offering no real legal or financial protection.
Think of a trust as a container: it can only safeguard what you place inside it. If you forget to retitle a bank account, fail to transfer real estate, or overlook personal items of value, those assets may still go through probate or remain exposed to creditors and potential taxes. To ensure your trust is effective, funding it thoroughly and accurately is essential.
Many people are surprised to learn that attorneys often draft the trust document, but it’s up to the individual to complete the transfers or work with their advisor to do so. Regularly reviewing your trust to confirm everything is properly titled helps maintain long-term protection and keeps your estate plan functioning as intended.
Myth: Estate planning only applies after your death
Another widespread myth is that estate planning is solely about distributing assets once you’re gone. While that is one important component, a complete estate plan also covers critical decisions during your lifetime. Planning ahead ensures that if you become unable to make choices for yourself, the people you trust can step in smoothly.
Key documents such as financial powers of attorney, medical powers of attorney, advance directives, and HIPAA releases allow you to specify who can act on your behalf and how decisions should be made. These tools protect you during periods of incapacity and provide clear guidance to loved ones, preventing confusion or conflict during stressful times.
Effective estate planning isn’t just about preparing for the end of life; it’s equally about protecting your well-being while you’re living. When done correctly, your plan serves as a roadmap for both medical and financial matters, ensuring your preferences are honored at every stage.
Myth: The best way to disinherit someone is to leave them $1
The idea of leaving a person a symbolic dollar to cut them out of your estate is an outdated strategy — and one that can cause more issues than it resolves. Including someone in your will, even for a nominal amount, officially makes them an interested party. This can give them access to private documents or potentially open the door for challenges against your will.
Modern estate planning recommends a much clearer and more effective approach. If you intend to exclude someone, the best practice is to state your intention explicitly and unambiguously within your estate documents. Clear language leaves little room for interpretation and helps reduce the risk of disputes.
A carefully worded disinheritance clause not only protects your wishes but also preserves privacy. Instead of drawing attention to the omission or prompting unnecessary involvement, direct and intentional language keeps your plan focused and legally sound.
Why an up-to-date, comprehensive plan matters
Estate planning isn’t a one‑and‑done task. It requires thoughtful follow‑through, regular updates, and professional insight to make sure it continues to serve your goals. Simply signing documents or making symbolic gestures won’t guarantee that your wishes are respected.
Your life, assets, and relationships can change over time, and your estate plan should evolve with them. Reviewing your documents periodically helps you stay aligned with your current priorities. This includes checking beneficiary designations, updating trustees or agents, and ensuring assets are properly titled.
Working with experienced professionals can also help uncover gaps in your plan and keep everything legally compliant. With the right guidance, you can build a plan that protects your property, minimizes stress for loved ones, and clearly communicates your intentions.
Final thoughts
Estate planning is more than just distributing assets or creating legal documents. It’s a holistic process that safeguards your future, ensures your voice is heard, and provides peace of mind for the people you care about. By understanding common myths — and the truth behind them — you’re better equipped to create a plan that genuinely supports your goals.
Taking a proactive approach today lays the groundwork for a smoother and more secure tomorrow, both for you and for the ones you love.
