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. Many long‑standing myths can make the process seem more complicated than it needs to be. By breaking down these misconceptions, you can better understand how to protect your assets and ensure your wishes are honored.

Myth: Setting up a trust automatically shields your assets

A widely held misconception is that simply creating a trust results in automatic asset protection. In reality, a trust only works when it’s properly funded. This means you must legally transfer ownership of your assets—such as property, bank accounts, or other financial holdings—into the trust.

When the transfer step is skipped, those assets don’t receive the benefits of the trust. Instead, they remain subject to probate, taxes, and potential creditor claims. It helps to think of a trust as a container: if nothing is placed inside, it cannot do its job. Without funding the trust, it becomes more of a legal placeholder than a useful estate planning tool.

Myth: Estate planning is only relevant after you’re gone

Many people assume estate planning only matters when it comes to distributing assets after death. In truth, a strong estate plan also outlines how your affairs should be handled during your lifetime, particularly if you become unable to make decisions for yourself.

Comprehensive planning includes choosing trusted individuals to manage your medical care and financial matters if you face incapacity. Key documents—such as powers of attorney for health care and finances, HIPAA waivers, and advance directives—allow you to clearly outline your preferences. These tools help ensure your wishes are known and reduce stress for those who may need to act on your behalf. Estate planning is not only about what happens later; it’s a practical way to maintain control and stability throughout your life.

Myth: You should leave someone $1 to disinherit them

The notion that leaving a symbolic amount, like a single dollar, is an effective way to disinherit someone is outdated and often counterproductive. By giving a person even a nominal gift, you may inadvertently give them legal standing to access sensitive information about your estate or challenge your decisions.

The more effective modern approach is to clearly state in your will or trust that you are intentionally excluding that individual. A direct, unambiguous statement makes your intentions legally sound and reduces opportunities for disputes. Instead of relying on symbolic gestures, using precise legal language is the best way to ensure your wishes are upheld while maintaining privacy.

Final thoughts

Estate planning involves more than filling out forms—it requires active participation, regular updates, and the right guidance. Drafting documents without proper execution or relying on outdated practices won’t necessarily achieve the results you want. By building a plan that is thorough, up‑to‑date, and legally aligned with your goals, you can confidently protect your assets and provide clarity for the people you care about.