Our beliefs shape our experiences and actions. Mistaken beliefs, or “myths,” complicate problems, while correcting them unlocks new possibilities. For centuries, European scholars clung to the myth that Earth was the universe’s center, explaining star motion but not planetary orbits. Copernicus’s realization that Earth orbits the Sun clarified everything. Similarly, myths about Trusts and estate planning create confusion. By debunking these, planning becomes simpler and clearer.
Myth: A Last Will and Testament Is the Primary Estate Planning Document
Reality: A Will should be a backup, invoked only if other mechanisms fail. The goal is to avoid probate, which a Will requires. Probate serves the government and attorneys, not you. A Trust, not a Will, is the master document for most estates, ensuring assets transfer without court involvement, except in the smallest cases.
Myth: A Trust Costs More Than a Will
Reality: A Will may cost a few hundred dollars, a Trust thousands. While a Will seems cheaper initially, it often leads to probate, inflating long-term costs. For small, simple estates, a Will with beneficiary designations may suffice. But with wealth, multiple properties, businesses, minors, or family drama, a Trust is more cost-effective and capable.
Myth: All Trusts Are Essentially the Same
Reality: Trusts vary like cars—some excel in crashes, others for speed, heavy loads, or rough terrain. Suitability depends on your goals: preventing family disputes, multi-generational protection from creditors or substance abuse, or addressing special needs. Some need advanced features like tax planning or mobility; others only basics. Choose a Trust tailored to your priorities.
Myth: A Revocable Trust Prevents Family Litigation
Reality: While a Revocable Trust may reduce litigation, most don’t. Litigation avoidance requires advanced Trust features, not standard ones.
Myth: A Revocable Trust Protects Your Assets
Reality: If you can amend a Revocable Trust, creditors can compel changes, offering no personal asset protection. However, advanced Revocable Trusts can protect assets for your children after your death, when the Trust becomes irrevocable. For current protection, additional structures are needed.
Myth: Trusts Require Your Name and “Revocable” in the Title
Reality: Long, identifiable names reduce privacy and complicate use. Including “revocable” causes issues, as Trusts become irrevocable at death, leading to delays in financial account setups. A short, simple name preserves privacy and avoids confusion.
Myth: A Trust Completes Your Estate Plan
Reality: Trusts and related documents become outdated as assets, family, laws, and wishes change. Regular updates—every five years or after major changes—ensure suitability. An old Trust may not match your current wealth or goals, like an out-of-tune instrument needing retuning or replacement.
Myth: A Pour-Over Will Funds Your Trust
Reality: This is poor advice. A Pour-Over Will transfers assets to the Trust only after probate, negating probate avoidance. Assets must be titled in the Trust or name it as beneficiary during your lifetime to bypass probate.
Myth: Listing Assets on a Trust Schedule Puts Them in the Trust
Reality: Listing assets doesn’t convey them. You must change titles or beneficiaries for bank accounts, real estate, retirement accounts, annuities, business entities, personal property, digital assets, and life insurance. Actual conveyance, not just listing, is required.
Myth: Ask Children How They Want Their Inheritance
Reality: Children aren’t equipped to answer this, just as a teenager would choose $50 for free over earning it. Asking adults whether to give an estate outright or protect it from creditors and poor judgment yields predictable answers. Those craving money or control are often most harmed by it. Children can encourage planning but shouldn’t dictate terms.
Myth: Professional Advisors’ Claims About Trusts Are Always True
Reality: Advisors disagree, debating vigorously among themselves. The IRS, authorities, and courts often differ, with appellate courts correcting errors. Some opinions are wrong, others right, affecting what your Trust achieves. Discrepancies can create chaos or harmony, depending on the advisor’s insight.
Filling the Advisor Gap
Sorting good advice from bad is a major challenge. The right advisors are critical; the wrong ones costly. Start with resources like the Generational Wealth Newsletter. No one has more at stake in your estate than you. Beware of know-it-all friends or family—shared ignorance isn’t wisdom. Research advisors’ public materials, like our books, articles, and website content. If our approach doesn’t resonate, find someone else. If it does, let’s work together.
So What?
Trust myths cloud planning, but clarity empowers action. Identify a myth affecting your plan, write down a step to address it, and act. Like tuning an instrument, aligning your Trust with reality ensures harmony. Consult professionals to craft a plan that works for you.
Busting Trust Myths © 2025 by Rick Durfee is licensed under CC BY 4.0 
Busting Trust Myths