8 Estate Planning Myths You Can't Afford to Believe

You might have heard the famous Yogi Berra quote: "Always go to other people's funerals, otherwise they won't come to yours." While it makes us chuckle, it touches on something many of us avoid thinking about - planning for what happens after we're gone.

As a financial advisor, I've seen how proper estate planning can be one of the greatest gifts you can give your family. Yet I often hear clients say, "I have plenty of time for that later, Andy." Maybe. But I care too much about my clients' families to let them put this off.

Let me share some common misconceptions I hear in my office and why they might be risking your family's future.

"I Don't Need a Plan" - Actually, You Do

One of my clients recently told me she didn't need an estate plan because "everything would just go to her kids anyway." She was shocked when I explained how, without proper planning, her family could face lengthy legal battles and unnecessary taxes. I worked with her estate planning attorney to create a solid plan, and now she has the confidence that her wishes will be honored.

"I Can Do It Myself" - Here's Why That's Risky

In my years as a financial advisor, I've seen what can happen when people try to handle complex financial matters on their own. Estate planning is a lot like investing - while you can do it yourself, the real question is: should you?

Remember Aretha Franklin? The "Queen of Soul" left behind an $80 million estate and multiple handwritten wills were found among her personal effects. Even with her tremendous success, this DIY approach created confusion and potential legal issues for her family.

Think of estate planning like building a house. Can you build a simple shed with a DIY kit? Probably. But would you want to build your family's home without an architect and contractor? Estate planning works the same way - the more you have to protect, the more expertise you need to do it right. While someone with very few assets might get by with a simple will, most of my clients need more sophisticated planning to help protect their legacy.

"All I Need Is a Will" - Think Again

When I meet with clients for the first time, many tell me proudly that they already have a will. That's a great start - but in my experience, a will alone often isn't enough to protect your loved ones.

Let me share a story that illustrates why. One of my clients thought her children would receive their inheritance quickly because she had a will. She was surprised when I explained that her assets would still need to go through probate - a court process that could take months or even years, leaving her children waiting and paying legal fees along the way.

Think of your estate plan like your retirement strategy - you wouldn't rely on just one investment for your entire retirement, would you? Just as I help my clients create comprehensive retirement income plans, I encourage them to build complete estate plans that might include:

●     A well-crafted will

●     Trusts to avoid probate and protect privacy

●     Life insurance to provide immediate funds to loved ones

●     Powers of attorney for financial and healthcare decisions

●     A living will to express your healthcare wishes

●     Long-term care insurance to protect your assets

●     Properly structured retirement accounts with updated beneficiaries

Remember, just as your retirement plan needs to work for your specific situation, your estate plan should be tailored to your unique needs. There's no one-size-fits-all solution - that's why working with experienced professionals is so important.

"I Don't Have Enough Assets" - Everyone Has an Estate

When I first started delivering newspapers as a kid, my mother taught me that even small amounts of money matter. The same is true with estate planning. Whether you have a multi-million dollar portfolio or just a few cherished family heirlooms, you have an estate that deserves proper planning.

"Set It and Forget It" Doesn't Work Here

Just as I review my clients' retirement income strategies regularly, estate plans need ongoing attention too. Life changes and your plan should keep pace. Here are some key moments when you should update your plan include:

●     Marriage or divorce (yours or your children's)

●     Birth of children or grandchildren

●     Purchasing a home or other valuable assets

●     Starting a business

●     Moving to a new state

"My Family Doesn't Need to Know" - Communication Matters

In my years of helping families with retirement planning, I've learned that surprises in financial matters rarely lead to good outcomes. While you don't need to share every detail, helping your family understand your intentions can prevent confusion and conflict later. Make a list of which heirs will receive collectibles or heirlooms. If your family has some issues, this may go a long way toward reducing tension and avoiding legal fees.

"Everyone Has My Best Interests at Heart" - Be Wisely Cautious

As a fiduciary, I'm legally bound to put my clients' interests first. But not everyone in your life may have the same obligation. I've seen situations where well-meaning family members or caregivers might influence decisions that aren't in my client's best interest. That's why I often recommend working with objective professionals who have a legal duty to protect your interests.

"My Heirs Will Get Everything" - Understanding the Real Costs

As a financial advisor, I work closely with many skilled estate planning attorneys. One thing they've taught me is that without proper planning, probate costs and delays can significantly reduce what your heirs actually receive.

What many people don't realize is that probate can take more than a year to settle an estate, with attorney's fees, appraiser's fees, and court costs potentially consuming up to 5% of the assets. Most of these expenses go toward basic paperwork that may have been avoided with proper planning.

Think of it like tax planning - you wouldn't want to pay more taxes than necessary in retirement, right? Similarly, you don't want court costs and legal fees eating away at your legacy. As part of my commitment to helping you enjoy a worry-free retirement, I'm happy to coordinate with your estate planning attorney or recommend experienced professionals who can help protect your legacy.

Creating Your Legacy Plan

At Tapparo Capital Management, we believe that a solid estate plan is just as crucial as a sound retirement strategy. Both give you confidence that you're taking care of your family's future. Just as I make smart investment choices for both my clients and my own portfolio, I encourage everyone to make smart estate planning choices.

Ready to protect your family's future and create your legacy plan? Let's talk about how I can help. Call me at 978-887-1121 or email andrew@tapparocapital.com to schedule a "Get Acquainted Call." Together, we can discuss strategies designed to honor your wishes and protect your family.

About Andy

Andrew Tapparo is a fee-only financial advisor at Tapparo Capital Management, a financial planning firm in Topsfield, MA, helping clients turn their savings into a retirement income that lasts. Inspired by the quote “Choose a job you love, and you will never work a day in your life,” Andy founded Tapparo Capital Management in 1997 with a passion for helping clients enjoy a truly worry-free and fulfilling retirement and experience financial freedom. As a Retirement Income Certified Professional (RICP®), he designs retirement strategies along with sound money management to help clients retire with confidence.

Andy holds a Bachelor of Science in Industrial Engineering from Rochester Institute of Technology in Rochester, New York, and a Master of Science in Finance from Bentley University in Waltham, Massachusetts. Specializing in retirement income planning, Andy completed a comprehensive financial industry education program at The American College of Financial Services and was awarded the Retirement Income Certified Professional® designation. He is frequently quoted in the media as a financial expert.

Andy and his wife, Susan, live in Topsfield, Massachusetts, and have two beautiful daughters. Outside of work, he is an automobile enthusiast, enjoys taking road trips, and loves the Outer Banks of North Carolina. In his spare time, he volunteers with the local high school varsity girl’s basketball team as the team statistician and runs the team’s website. He is passionate about supporting charities that serve our veterans and their families. To learn more about Andy, connect with him on LinkedIn.