Estate planning often comes with a surprising amount of confusion. Misunderstandings about how trusts work, what estate planning actually covers, and the right way to handle disinheritance can lead to costly mistakes. Below, we break down some of the most widespread myths and clarify the truth behind them.

Myth: Setting up a trust automatically shields your assets

Many people assume that creating a trust instantly safeguards everything they own. In reality, a trust only works as intended when it is properly funded. This means that your assets must be formally transferred into the trust — otherwise, they remain subject to probate, potential taxes, and creditor claims.

You can think of a trust as an empty container that only becomes useful once you place property, accounts, or other assets inside it. If you never complete the transfer process, the trust offers no real protection and won’t help avoid probate.

Myth: Estate planning only applies after you’re gone

It’s easy to view estate planning as something that takes effect solely after your passing, but that’s only part of the picture. A well-designed plan also prepares for situations where you may be alive but unable to make decisions on your own.

Key documents such as health care directives, financial and medical powers of attorney, and HIPAA releases allow you to appoint trusted individuals to manage your affairs if you become incapacitated. These tools reduce stress for loved ones, ensure your wishes are honored, and show that estate planning is just as much about safeguarding your life today as it is about distributing assets in the future.

Myth: Giving someone $1 is the right way to disinherit them

The old practice of leaving someone a symbolic one-dollar inheritance is outdated and can actually cause complications. By naming the person in your will for any amount, you often give them certain rights — including the ability to access information about your estate or challenge your plan.

Modern estate planning favors a much clearer approach. If you intend to exclude someone, the most effective method is to state your decision directly and unambiguously in your will or trust. This helps ensure your wishes are respected and reduces the likelihood of disputes or unwanted scrutiny.

Final thoughts

Estate planning is more than preparing documents — it’s an ongoing process that requires careful attention and regular updates. Relying on assumptions or outdated advice can leave your assets vulnerable and your intentions unclear. Taking the time to create a thorough, up-to-date plan with proper legal guidance is the best way to protect what matters most and give your loved ones peace of mind.