Estate planning isn’t just for the wealthy or those nearing retirement—it’s a step every adult should consider. At PayneLess Law, we’ve seen how misconceptions about estate planning can lead to unnecessary stress, legal complications, and unmet wishes. That’s why we’re committed to helping Arizonans understand the truth behind estate planning so they can make informed choices about their future.

Here, we’ll look at 10 widespread myths about estate planning, break them down, and give you a clear picture of what’s fact and what’s fiction.

1. Estate Planning Is Only for the Wealthy

Many people think estate planning is only for those with significant wealth, but the reality is that it’s important for everyone. Estate planning ensures the courts respect your wishes, whether you own a home, have savings, or simply want to protect your loved ones. It’s not about wealth—it’s about control and clarity. If you don’t have a plan, Arizona’s laws will decide how to distribute your assets, which may not align with your intentions. Estate planning also allows you to designate guardians for children and give healthcare directives, so it is invaluable regardless of your financial situation. Also, our PayneFree Estate plans include documents that plan for incapacity or when you are still alive but cannot make your own financial and health decisions without assistance. This type of planning is necessary regardless of your assets or wealth. (See #4 below) Tools like trusts, powers of attorney, and healthcare directives work together to create a comprehensive plan.

2. A Will Is All You Need

While a will is an important part of estate planning, it’s not the whole story. A will allows you to determine how to distribute your assets, but it requires probate to do so unless you also have a living trust. Trusts can simplify the process for your loved ones, while powers of attorney ensure decisions are handled as you intended. Relying solely on a will can leave gaps that may complicate matters later.

3. Estate Planning Is a One-Time Task

Estate planning isn’t a “one-and-done” event. Life changes—marriage, divorce, the birth of a child, or acquiring assets—can affect your plan. Tax changes – estate or death tax changes, or even changes to retirement account tax treatments can affect your plan. Regular updates ensure your plan reflects your current circumstances and intentions. Outdated plans can create confusion or unintended outcomes, especially if laws change or family dynamics shift. By reviewing your estate plan periodically, you can address these changes and maintain control over your legacy, giving you and your loved ones peace of mind.

4. Estate Planning Is Only About Money

Estate planning involves much more than just dealing with money. It includes healthcare decisions like naming a power of attorney, setting up advance directives, and appointing guardians for minor children. These elements of our PayneFree Estate plan allow you to determine your personal and medical preferences in case the time comes when you can’t voice them. Additionally, estate planning can address digital assets, from email accounts to social media profiles, so you can determine how to manage them. It’s about organizing every aspect of your life, not just distributing wealth.

5. Young Adults Don’t Need Estate Plans

Many young adults think estate planning is only necessary later in life, but it’s important at any age. For instance, a healthcare power of attorney ensures someone can make medical decisions for you in an emergency. Similarly, naming a financial power of attorney protects your assets if you cannot manage them yourself. Even with few assets, having a plan in place can prevent legal headaches and provide clarity for your family if something unexpected happens.

6. Estate Taxes Will Consume Most of the Estate

Fear of estate taxes often discourages people from planning, but in reality, most estates are not affected. The federal estate tax exemption is over $13 million per individual as of 2024, and Arizona does not have a state estate tax. While taxes are rarely an issue for most families, proper planning can still help reduce costs, like capital gains taxes, ensuring your assets are preserved for your loved ones. But see #3 above – tax laws can and do change. The current federal estate tax exemption is scheduled to sunset (expire and revert to the old law) in December 2025.

7. Arizona Intestacy Laws Are Good Enough

Relying on Arizona’s default intestacy laws (A.R.S. §14-2102) can lead to unintended consequences. These are the laws that decide how assets are distributed when someone dies without a will, often prioritizing immediate family in ways that may not match your wishes. For example, there may be close friends or distant relatives who you want to include. Creating an estate plan ensures your assets go to the people you choose, offering clarity and avoiding disputes among loved ones.

8. Choosing an Executor or Trustee is Simple

Selecting a Personal Representative (also known as an Executor) or a Trustee is a critical decision, not just a formality. This person or entity manages your estate or trust, pays any debts, and ensures your wishes are carried out. In Arizona, they must meet certain legal requirements, like being 18 or older and of sound mind. Beyond that, they need to be trustworthy, organized, and capable of handling responsibilities. Choosing the wrong person can lead to delays and conflicts, making it essential to choose carefully.

9. Arizona Probate Is Quick

Probate in Arizona is often more time-consuming than people expect. Depending on the estate’s complexity, it can take months or even years, delaying asset distribution and increasing costs. Proper estate planning, including trusts and updated beneficiary designations, can help minimize or avoid probate altogether. This saves time, reduces stress, and ensures your loved ones can access what they need more quickly.

10. Updating a Will Covers Everything

Updating your will doesn’t automatically update all related documents. Beneficiary designations on life insurance policies, retirement accounts, and other financial assets must be revised individually. Overlooking this step can lead to assets being distributed to the wrong people, even if your will says otherwise. Keeping all documents current ensures your estate plan works seamlessly and reflects your most recent intentions.

Secure Your Legacy Today: Contact PayneLess Law

Don’t let these myths keep you from taking control of your future. Estate planning is a meaningful way to ensure your wishes are honored and your loved ones are cared for. At PayneLess Law, we’re here to guide you through the process with a clear, straightforward approach tailored to your needs.

Contact us today at 480-420-7199 or schedule a consultation a FREE consultation. Together, we’ll create an estate plan that protects your legacy and gives you peace of mind.