Top 10 Legacy Planning Myths: What's Really Stopping You?

When it comes to planning your legacy, misconceptions and misinformation can act as significant barriers. It’s no wonder so many people put off this crucial task. The unfortunate result, less than 50% of adults in the UK have a valid will.

So, let’s debunk the top 10 myths about legacy planning and help you take your first steps to protect your legacy, and your loved ones.

Myth 1: Only Wealthy People Need to Write a Will

A will is not just for the ultra-rich. Regardless of your estate’s size, a will ensures your assets are distributed according to your wishes. In addition to protecting against unexpected consequences of the other myths discussed below, it’s especially critical if you have children, as it allows you to designate guardians for them.

Take Control: Writing a will is for everyone—it’s about your loved ones and your legacy, not just your wealth.

Myth 2: Without a Will, the Government Will Take My Money

If you use Facebook, you’ve probably seen the click-bait headlines, but contrary to popular belief, the government doesn’t automatically claim your estate if you pass away intestate (without a will). Instead, your assets are distributed according to intestacy laws. But these might not align with your intentions. Only in the rare case where no relatives can be identified does the government step in.

The Fix: A well-crafted will ensures your assets go to the people and causes you care about most and helps your loved ones avoid potentially costly and stressful legal wrangling.

Myth 3: My Family Will Agree on How to Split My Estate

Sadly, disputes over inheritance are more common than you might think. In the UK, disputes over inheritances have risen by 40% in the past four years, often leading to protracted legal battles. Contested wills can strain relationships and needlessly deplete estate funds, leaving loved ones with more stress and fewer resources.

Avoid Conflict: Clearly recording your wishes in a will — and securely storing it in a digital vault so it can’t be lost or edited — can significantly reduce the risk of family disputes. Your will ensures your loved ones know your wishes leaving them to spend their time remembering you, rather than guessing what you would have done if you were here.

Myth 4: My Partner Will Inherit Everything

While it’s a comforting thought, inheritance laws (called the ‘rules of intestacy’) often follow rigid, outdated frameworks which may not work for your situation. Even if you’re married or in a civil partnership, your partner may not automatically inherit everything, especially if there are children or other dependents involved.

Unmarried partners face even greater risks, potentially receiving nothing if their partner passes away without a legally binding will that specifically includes them.

Laws have not kept up with our changing family structures and the complexity of modern life. Fortunately, with prior planning you’re in control and protecting your legacy doesn’t need to rely on outdated rules.

The Solution: Writing a will allows you to decide exactly how your assets are divided, ensuring your loved ones are cared for according to your wishes.

Myth 5: Everyone Pays Inheritance Tax (IHT)

Inheritance tax (IHT) is an important topic, but its impact is often misunderstood. Recent UK data shows that only 4.39% of estates were liable for IHT in 2021/22, though this percentage is projected to rise. Misconceptions about tax liability can cause unnecessary anxiety. Whether you think your estate will be subject to IHT or not, rules change, so it’s always a good idea to plan ahead.

Plan Ahead: Consulting a professional and using a digital will and legacy planning tool can clarify your tax position and help minimize liabilities through effective planning.

Myth 6: All My Debts Are Wiped Out When I Die

Debt doesn’t simply disappear. Before your beneficiaries receive anything, the money or proceeds from your estate will be used to settle outstanding debts, as well as pay for funeral and other expenses. This can significantly reduce what remains for your loved ones.

Tip: Proper legacy planning can help ensure debts are managed efficiently, preserving as much of your estate as possible for your beneficiaries.

Myth 7: Once My Will Is Written, My Wishes Are Set in Stone

Life is dynamic, and so is your will. Changing circumstances, such as marriage, divorce, or the birth of children, often necessitate updates to your will. If you have a will, you’re already better prepared than 50% of adults, but even less have a valid will as they haven’t kept it up to date with changing family structures, lifestyles, and wishes.

Be Flexible: Review and update your will regularly to reflect your current wishes and circumstances. For clarity, it’s recommended to create a new will to account for any changes, rather than using a codicil which only updates or revokes specific sections.

Myth 8: My Digital Accounts Will Be Accessible to My Family

Our lives are increasingly lived and in some cases are recorded online, creating our digital legacy. Digital accounts are typically protected by strict terms of service that don’t consider ownership or even access to anyone except the account holder.

According to a review by the ‘Society of Trust and Estate Practitioners’ (STEP) most of the online platforms and social media companies we use in our daily lives score very poorly on supporting your digital legacy. Without proper planning, your family might face significant challenges accessing these accounts after your death.

Digital Legacy: Include instructions in your legacy plan for accessing your digital accounts. Set up a Legacy Contact in your Apple device or similar and use a secure digital vault to store this information so it’s easily accessible when needed.

Myth 9: My Social Media Accounts Will Be Deleted After I Die

Most social media platforms don’t automatically deactivate or memorialize accounts. Without a specific request, these accounts remain active indefinitely. Worse still, without planning your loved ones won’t be given access without a potentially protracted process that in some cases involves the courts.

Action Step: Create a plan for your social media presence, outlining your wishes for deactivation or memorialization, and set up legacy contacts for a trusted person to manage on your behalf.

Myth 10: Writing a Will Is Complicated and Expensive

Given the Wills Act of 1837 is almost 200 years old, you might think legacy planning is archaic and antiquated. To some extent it is, but writing a will is simpler and more affordable than ever.

Modern online tools allow you to create a legally valid will in less than 30 minutes, at an affordable price. Some more progressive digital will specialists like adeus allow you to update your will regularly for no additional fee.

Simplify the Process: Take advantage of technology to make will-writing quick, easy, and cost-effective. If needed, digital will specialists will happily connect you with expert partners to help with more complex questions and situations.

Final Thoughts

Don’t let these myths hold you back from protecting your legacy.

With the right tools and guidance – like the adeus digital wills and legacy planning platform – protecting your legacy and your loved ones can be a straightforward and empowering process.

From understanding inheritance tax to avoiding contested wills, adeus has been carefully designed to provide all the guidance you need, in a convenient and easy to use app, allowing you to take control of your legacy planning without the traditional complexity and expense you might expect.

Find out more at https://adeuslife.com and start protecting your legacy, and your loved ones today.