Common estate planning myths still persist in 2025, with only 33% of Americans having a will or trust, down 6% from 2023.
From what we have heard from our clients at Davenport & Associates, these misconceptions can lead to costly mistakes like probate fees averaging $10K or tax losses up to 40%.
If you’re thinking “I don’t need a trust because I’m not wealthy” or “A will is enough for my estate”, this blog debunks 6 common myths with 2025 insights.
FAQ: “What are the biggest estate planning myths in 2025?” – From assuming planning is only for the rich to ignoring incapacity, these errors risk your legacy.
Many believe trusts are only for millionaires, but 43% of middle-class Americans risk probate without one.
FAQ: “Do I need a trust if I’m not wealthy in 2025?” – No, trusts are for anyone with assets like a home or retirement accounts, avoiding probate costs (3–7% of estate value).
A revocable trust protects modest estates from probate delays (9–18 months) and fees ($5K–$10K average). In 2025, with 52% lacking any plan, trusts ensure efficient asset transfer.
52% of people think a will suffices, but it doesn’t avoid probate or incapacity issues.
FAQ: “Is a will enough for estate planning in 2025?” – No, wills go through probate (costs 3–7% of estate), unlike trusts that bypass it.
Wills are public and probate-heavy; trusts offer privacy and control.
Stat: 56% underestimate probate costs, thinking under $1,000.
Trusts also handle incapacity, essential as 46% retire for health reasons.
This myth deters many homeowners, but 70% of estates include real estate vulnerable to probate.
FAQ: “Can I put a mortgaged home in a trust in 2025?” – Yes, under the Garn-St. Germain Act, it doesn’t trigger the due-on-sale clause.
Mortgage lenders allow trust transfers if you remain responsible for payments. This protects your home from Medicaid look-back while avoiding probate fees. In 2025, with home equity at record highs, trusts safeguard $300K+ average homes.
Only 33% of adults have plans, with 43% citing health as a trigger.
FAQ: “Is estate planning only for the elderly in 2025?” – No, 56% of 18–34 year-olds now plan, driven by incapacity risks.
Planning protects against unexpected events like illness, benefiting all ages. Stat: 46% retire for health, underscoring early preparation.
This overlooks probate for non-designated assets.
FAQ: “Do beneficiary designations override a will in 2025?” – Yes for specific assets, but wills handle the rest, risking probate for 60% of estates.
Designations cover IRAs but not homes; trusts unify everything.
Costs deter 43%, but flat-fee services save 50% vs. hourly.
FAQ: “How much does estate planning cost in 2025?” – $1,500–$3,000 for trusts, far less than probate ($10K average).
Free consultations and fixed fees make it accessible; skipping planning costs more.
With 52% lacking plans, debunking myths is key.
FAQ: “Common estate planning mistakes in 2025?” – Ignoring trusts for mortgages or assuming wills suffice.
Contact Davenport & Associates for a free consultation to craft your plan or take our free estate planning quiz to see where your plan stacks up!