CARY, N.C., Sept. 10, 2025 (GLOBE NEWSWIRE) -- What do most people misunderstand about estate planning? According to HelloNation, Amy Whinery Osborne of The Law Offices of Amy Whinery Osborne, P.C. in Cary, North Carolina, explains that the confusion often starts with believing estate planning is the same as writing a will. While a will is important, Whinery highlights that it does not control everything someone owns. Many assets transfer outside a will through how they are titled or through beneficiary designations, and ignoring those details can create costly and stressful problems for families. Osborne explains that the biggest estate planning mistakes often come not from documents themselves but from asset titling. Retirement accounts and life insurance policies, for example, do not follow a will but instead transfer based on beneficiary forms. If those forms are outdated or incomplete, the funds may end up in the wrong hands or enter probate. She advises reviewing each account carefully, naming both primary and contingent beneficiaries, and making sure designations reflect current intentions. Special care should be taken when children are involved, with custodians or trusts providing safeguards until minors are ready to manage assets.
Another common misconception is that trusts are only for wealthy households. Osborne notes that a basic revocable living trust can benefit many families by avoiding probate, maintaining privacy, and simplifying estate administration across state lines. However, she emphasizes that a trust only works if it is properly funded. Moving titled assets into the trust or naming the trust as a beneficiary is what makes the tool effective. An unfunded trust, she warns, is like an empty safe that provides no real protection.
Osborne also cautions against misusing joint ownership. Adding an adult child to a deed or bank account might seem simple, but it can unintentionally disinherit other children, expose assets to creditors, or trigger tax issues. Instead, she suggests considering transfer-on-death or payable-on-death designations as cleaner solutions that preserve control during life while ensuring assets pass smoothly at death.
Taxes create another layer of misunderstanding in estate planning. Many families focus on estate tax even though most will never owe it. Osborne stresses that income taxes and cost basis issues are usually more relevant. Appreciated assets often receive a step-up in basis at death, reducing capital gains if sold later. Gifting highly appreciated assets during life can eliminate that benefit, leaving heirs with larger tax bills. Careful planning around when and how to transfer assets can prevent these unintended outcomes.
State rules also complicate matters for do-it-yourself estate plans. Each state has its own requirements for signing wills, transferring real estate, and recording deeds into trusts. Small errors in execution can invalidate documents or undo planning intentions. Osborne advises that even well-drafted documents may fail without proper attention to state-specific rules and filing procedures.
The practical side of estate settlement is another area where families often stumble. Even the best documents are useless if no one can locate them or access key accounts. Osborne recommends keeping an updated inventory of accounts, insurance policies, and important contacts. She also encourages clients to record where originals are stored, how recurring bills are paid, and how passwords can be securely accessed. A simple letter of instruction, she says, can save families weeks of confusion and frustration.
Incapacity planning is equally vital. A durable power of attorney allows a trusted individual to manage financial and legal matters if someone becomes unable to act. Without it, families may need to seek a court order to handle routine tasks like paying bills or filing taxes. Osborne underscores the importance of naming both a primary and a backup agent to ensure continuity.
Finally, she stresses the need for periodic reviews. Marriages, divorces, deaths, relocations, and new accounts all change the estate planning landscape. A plan that once worked well may fall out of alignment over time. Osborne recommends reviewing plans every few years or after significant life changes to keep documents and asset titles consistent with current goals.
The key takeaway, according to Osborne, is that successful estate planning is less about drafting complex documents and more about coordination. Ensuring that wills, trusts, beneficiary designations, and asset titles align prevents probate problems, reduces delays, and protects families from unnecessary costs. By understanding these estate planning mistakes and taking corrective steps, individuals can ensure their wishes are honored and their loved ones are safeguarded.
More insights can be found in Osborne's article, What Most People Get Wrong About Estate Planning, published in HelloNation.
