Think You Don’t Need an Estate Plan? You May Be Surprised
“I’m too young.” “We don’t have enough money.” “My spouse will take care of everything.” “We already have life insurance.” “We’ll deal with it later.”
Estate planning is easy to put off because there always seems to be a reason you do not need to handle it today.
But estate planning is not just about wealth or what happens after you die. It can help you choose who handles financial and healthcare decisions if you cannot make them yourself. It can help parents make their wishes known about guardians for minor children. It can also give your family clearer instructions about what should happen to your property.
At Margerie Law, we help individuals and families throughout Milwaukee, Wauwatosa, Brookfield, Elm Grove, and nearby Wisconsin communities understand what estate planning actually does.
Let’s clear up some of the most common misconceptions.
Misconception #1: Estate Planning Is Only for Wealthy People
This may be the biggest estate planning misconception. You do not need millions of dollars to have an estate.
Your estate can include your home, bank accounts, vehicles, personal property, retirement savings, investments, and other assets. But money is only part of estate planning.
Consider the decisions that have nothing to do with being wealthy.
Who would you want making healthcare decisions if you could not make them yourself? Who should handle important financial matters? Who would you want to care for your children? Who should handle your estate after your death?
These questions can matter whether your estate is worth $100,000 or $10 million. Estate planning is about having a plan for the people and decisions that matter to you.
Misconception #2: I’m Too Young to Need an Estate Plan
Many people think estate planning is something they will handle in their 60s or 70s. For parents, waiting that long makes little sense. Young parents have some of the most important estate planning decisions to make.
If both parents were gone, who would they want caring for their children? How should money be managed for those children? Who could handle financial matters if a parent became seriously ill or injured?
Younger adults without children can benefit from planning too.
An accident or illness can happen at any age. Powers of attorney can help you choose the people who could make certain financial and healthcare decisions if you were unable to make them yourself.
Estate planning is not something you earn the right to do by getting older. Your life situation matters more than your age.
Misconception #3: My Spouse Can Automatically Handle Everything
Marriage can make certain financial and legal matters easier, but it does not mean your spouse automatically has unlimited authority to handle every matter for you.
You may have accounts in your own name. You may own a business. There may be contracts, financial matters, or other decisions that require proper legal authority.
Healthcare decisions also deserve planning. Powers of attorney allow you to name the people you want making certain decisions if you cannot make them yourself.
There is another question couples sometimes overlook: What happens if something happens to both of you?
This is especially important for parents. Estate planning lets you look beyond the assumption that one spouse will always be available to handle everything.
Misconception #4: A Will Is All I Need
A will is an important estate planning document. It is not an entire estate plan.
Your will primarily provides instructions for certain matters after your death. It can name beneficiaries, nominate a Personal Representative, and allow parents to nominate guardians for minor children.
But a will does not answer every question.
What happens if you are alive but cannot handle your finances? Who can make healthcare decisions if you cannot communicate? What happens to an account that has its own beneficiary designation? Would a trust make sense for your family?
A complete estate plan may include a will, Durable Power of Attorney, Healthcare Power of Attorney, beneficiary planning, and sometimes a trust. The exact documents depend on your situation.
You do not need every estate planning document available. You need the ones that solve the problems your family could actually face.
Misconception #5: Everything Goes Through My Will
This misconception can cause major confusion. Your will does not necessarily control everything you own.
Some assets may have beneficiary designations. Life insurance and retirement accounts are common examples.
Other property may be affected by how it is owned. Assets held in a trust may be controlled by the trust rather than your will. This means your estate plan needs to look beyond the will itself.
Imagine that you update your will after a major life change but never review the beneficiary designation on an old retirement account.
You may believe your new will controls where that money goes. That may not be the case.
This is why beneficiary reviews and asset ownership should be part of the estate planning conversation.
Misconception #6: If I Die Without a Will, Everything Goes to the State
This is another common fear. Dying without a valid will is called dying intestate. Wisconsin law provides rules for how property in a probate estate passes when someone dies without a valid will.
That does not mean the state automatically takes everything.
However, there is still an important problem: You did not choose the plan.
Wisconsin’s default rules apply instead. Those rules may produce a result similar to what you wanted, or they may not.
You also lose the opportunity to use your will to nominate your preferred Personal Representative and, for parents, guardians for minor children.
A will allows you to put your own choices in writing rather than relying entirely on default rules.
Misconception #7: Having a Will Means My Estate Avoids Probate
A will and probate are not opposites. In fact, a will often provides instructions for property that passes through the probate estate.
Whether probate is required can depend on what you own, how property is titled, beneficiary designations, trusts, and other factors.
A will can still be extremely valuable even if probate is involved.It tells your family and the court whom you nominated as Personal Representative, who should receive certain property, and other important wishes.
If avoiding probate is one of your main goals, tell your estate planning attorney. There may be different planning options worth discussing.
Misconception #8: Everyone Needs a Trust
Trusts can be useful estate planning tools. That does not mean everyone needs one.
A trust may make sense if you want continued management of assets for children, have certain probate concerns, own property that creates additional planning needs, or want greater control over how certain assets are distributed.
Other families may be able to accomplish their goals with a simpler will-based estate plan.
More documents do not automatically mean better planning. We prefer to start with your goals.
What are you trying to protect? What concerns you? What does your family need?
If a trust helps accomplish those goals, we can discuss it. If it does not, there is no reason to make your plan complicated simply because trusts sound more advanced.
Misconception #9: A Trust Automatically Protects Everything
Creating a trust does not create a magic shield around your property. Different trusts accomplish different things.
A standard revocable living trust should not automatically be viewed as protection from creditors, long-term care expenses, taxes, or every other financial concern.
A trust also needs to be properly coordinated with your assets. If you create a living trust but never properly connect appropriate property to it, the trust may not accomplish everything you expected. This process is often called funding the trust.
Before creating a trust, understand why you need it, which property should work with it, and what needs to happen after the documents are signed.
Misconception #10: I Can Just Use an Online Will
Online estate planning tools can look attractive. They may be inexpensive and quick.
The problem is that estate planning involves more than filling in blank spaces.
Who should serve as guardian? Should the same person manage money for your children? How do beneficiary designations fit with your will? Do you need a trust? How should property be titled? What happens if your first choice for an important role cannot serve?
A generic document does not necessarily know which questions your family needs to answer. An estate planning attorney can ask those questions, explain your options, and help make sure your documents work together.
Your plan does not need to be complicated. But it should be built around your actual life.
Misconception #11: Once I Sign My Estate Plan, I’m Done Forever
Signing your estate planning documents is a big accomplishment. Then life keeps moving.
You may have another child. Buy a larger home. Get divorced. Remarry. Change jobs. Build your retirement savings. Start a business. Lose someone you named in your plan.
The people you trust can change too. A guardian you selected when your children were babies may no longer be the person you would choose ten years later.
That is why estate plans should be reviewed. You do not necessarily need to make changes every year.
Instead, use major life events as reminders to look at the plan and ask whether it still represents your wishes.
Misconception #12: I Need to Have Everything Figured Out Before Meeting an Attorney
This misconception keeps people from getting started. You may know that you need a will but have no idea whom to choose as guardian.
Maybe you cannot decide who should be your financial agent. Perhaps you have heard about trusts but do not know whether you need one. That is okay.
You are not expected to become an estate planning expert before meeting with an estate planning attorney. Bring your questions. Tell us what worries you. Tell us about the decisions you are struggling to make.
Part of our job is helping you understand your choices so you can make decisions that fit your family.
Frequently Asked Estate Planning Questions
Do I need an estate plan if I don’t have children?
Yes, estate planning can still be valuable.
You may want to choose who receives your property, who handles your estate, who can manage financial matters for you, and who can make healthcare decisions if you cannot.
Do I need an estate plan if I rent my home?
Owning a home is not a requirement for estate planning.
You may still have savings, retirement accounts, insurance, vehicles, personal property, and other assets.
Powers of attorney can also be important regardless of whether you own real estate.
Can I wait until I have more money?
Waiting until you reach a certain financial milestone can leave important decisions unaddressed.
Estate planning is about much more than the value of your property.
If you have people you care about and decisions you want to control, you have reasons to plan.
Does having beneficiaries mean I don’t need a will?
No.
Beneficiary designations can control certain assets, but they do not replace everything a will does.
For example, parents use wills to nominate guardians for minor children.
Do married couples need separate wills?
Each spouse generally has their own will.
Couples often plan together so their documents support the same family goals, but each person’s will addresses their own estate and wishes.
Can I change my estate plan later?
Estate plans can often be updated as your circumstances and wishes change.
That is one reason you do not need to predict the rest of your life before creating a plan today.
Is estate planning only about death?
No.
Powers of attorney can help prepare for situations during your lifetime when you cannot handle certain financial or healthcare decisions yourself.
That is a major part of estate planning.
Does estate planning take months to complete?
A straightforward estate plan does not necessarily need to become a long project.
The timeline depends on your situation and the decisions you need to make.
For many people, the hardest step is scheduling the first conversation.
Do I have to tell my family everything in my estate plan?
You do not necessarily need to share every detail.
However, the people you have selected for important roles should generally know that you chose them, and someone you trust should know where your estate planning documents are stored.
What if I already have documents from years ago?
Bring them with you.
An older estate plan may still work, or changes in your family, finances, property, or Wisconsin law may mean it deserves another look.
Reviewing existing documents is better than assuming they still accomplish what you want.
Don’t Let a Misconception Keep You From Planning
Estate planning can sound complicated from the outside. It becomes much easier once you stop thinking about documents and start thinking about decisions.
Who do you trust? Who depends on you? What would you want to happen? Who should be able to help if you cannot make decisions yourself?
Those are the questions at the center of estate planning. You do not need to be wealthy, retired, or facing a health problem before those questions matter.
And you do not need every answer before you start.
Talk With a Milwaukee Estate Planning Attorney
Estate planning myths can make it easy to put off decisions that matter to your family.
At Margerie Law, we help individuals and families throughout Milwaukee, Wauwatosa, Brookfield, Elm Grove, and nearby Wisconsin communities understand estate planning without making it more complicated than it needs to be.
We can help you understand wills, trusts, powers of attorney, guardianship choices, beneficiary planning, and how the different pieces of your estate plan should work together.
If you already have documents, we can also help you review whether they still fit your life today.
You do not need to know exactly what you need before contacting us. Tell us about your family and your concerns, and we will help you understand the next steps.
Call Margerie Law at (414) 254-4784 to talk with a Milwaukee estate planning attorney. Our offices are located in Wauwatosa and Elm Grove, Wisconsin.
About Us
Hi, I'm Paul and I believe I'm the best estate planning attorney in Brookfield, WI. I help my clients understand their options and put a plan in place to protect their most valuable assets for future generations. Working closely with top financial professionals I help families of all sizes and types plan for tomorrow in order to enjoy today. I proudly serve clients in Milwaukee, Brookfield, Elm Grove, Wauwatosa, and throughout SE Wisconsin. If you need Estate Planning help, a Will, a Trust setup, or are just looking for some life planning advice, give me a call today.
