Common Myths About Wills And Estate Planning

From USA Today, 5 Myths About Wills And What You Should Do:

"60% of Americans don't have wills."

Myth 1: Estate planning is for rich people.
Fact 1: Your assets will be distributed under state "intestate succession"
laws, going to family members not as you would have wished.
You also need to include a durable power of attorney, and health care directive in your estate plan.

Myth 2: Without a will, everything will go to Spouse.
Fact 2: Depending on the state, without a will, most assets will go to spouse and children.

Myth 3: With a will, estate will not go to probate.
Fact 3: All wills go to probate. You can avoid probate with a living trust, a document that holds your property. But for most small estates, states have low cost express probate.
(Editor's note- You can also use a JTWROS document, TOD, or POD documents to bypass probate, each with advantages and disadvantages).

Myth 4: After making a will/trust, I am done.
Fact 4: You need to retitle assets in order to place assets into trust.
You need to update estate plans to reflect major life event changes-divorce, birth of child, or if moving to another state.

Myth 5: I am responsible for parents' debts.
Fact 5. The estate pays debts. If the estate runs out, the debts go unpaid. Debt collectors should contact the estate executor.
(Editor's note: If assets are distributed to heirs, then those heirs are liable to pay from those assets.

www.usatoday.com/money/perfi/basics/2009-10-22-making-a-will_N.htm