Myth #1: A Will is Enough; I Don’t Need a Trust

Myth

A Will is sufficient because it clearly outlines how assets should be distributed after death. It seems straightforward: list your beneficiaries, name an executor, and you’re set. This simplicity leads to the assumption that no other planning tools, like a trust, are needed, even if you’re wealthy. Many people assume that a will alone will handle everything smoothly, avoiding complications like probate, legal fees, or family disputes.

Movies:

1. Knives Out (2019) – Harlan Thrombey, a wealthy novelist, leaves everything to his nurse Marta through a simple will. 
2. The Grand Budapest Hotel (2014) – The wealthy Madame D. leaves her fortune (including a valuable painting) through a will.
3. The Bachelor (1999) – The protagonist’s grandfather leaves a will stating that he must get married by age 30 to inherit $100 million. 
4. Brewster’s Millions (1985) – Monty Brewster’s great-uncle’s will states that he must spend $30 million in 30 days to inherit a larger fortune. 
5. Greedy (1994) – A wealthy uncle’s will is the sole legal document determining who gets his estate. His greedy relatives try to manipulate him into leaving them everything.

TV Shows:

1. The Simpsons (Season 22, Episode 11 – “Flaming Moe”) – A wealthy woman’s will determines who inherits her estate. 
2. Matlock (Various Episodes) – Several episodes involve wealthy individuals being killed or defrauded over wills.

Sources: Why the Myth Exists?

1. Lack of Awareness About Trusts: Many people are unfamiliar with how trusts work, assuming they are complicated legal tools reserved for the ultra-wealthy.
2. Oversimplified Estate Planning Advice: Some estate planning advice (especially online) focuses heavily on creating a simple will, leading people to believe that it’s sufficient for all situations.
3. Misunderstanding the Role of Probate: People often think that a will helps them avoid probate, which is not true. A will actually requires probate to be validated by the court.
4. Perception of Trusts as Expensive or Overkill: Trusts can be more complex and expensive to set up initially, causing people to dismiss them as unnecessary unless they have large estates.

Reality: Trust Advantages 

1. Avoids Probate: Assets in a revocable living trust do not go through probate, allowing for quicker distribution to beneficiaries, without the substantial expense and delays of probate.
2. Privacy: Trusts are not public records, so the details of the estate remain private, unlike wills which become public during probate.
3. Management During Incapacity: A trust allows for the management of assets if the owner becomes incapacitated, ensuring continuity without court intervention.
4. Pet Care Provisions: You can specify detailed instructions for the care of your pets, including funds for their maintenance and naming a caregiver.
5. Flexibility in Distribution: Living trusts can include specific provisions for how and when beneficiaries receive their inheritance (e.g., for young beneficiaries), allowing for staggered distributions or delayed distributions based on age or milestones, or special needs planning for disabled beneficiaries.
6. Protection from Creditors/Divorce: Assets in your living trust offer protection for beneficiaries from creditors, divorces, tax consequences, etc.