Estate planning is a complex and intricate subject, which can be understandably difficult for non-experts to fully grasp.

And research from Canada Life has revealed that the level of misconception is high across a range of related areas, including estate planning, wills and succession. For example, almost 4 in 10 adults believe that if all assets pass to their spouse, they will avoid probate.

While it can be a complicated subject, simply ignoring it isn’t the answer. By educating yourself on a few of the facts, you can make sure you’re covering all bases.

Read on to discover seven of the most common estate planning misconceptions and find out the facts.

1. It doesn’t matter if I don’t have a will, everything will automatically go to my loved ones

A third of people in the research said this was true, but it isn’t actually the case.

If you die intestate – without a will – then there are laws which dictate how your assets are divided. It may well be that your wealth goes to family members, but making a will means you have full control over exactly who gets what.

2. I’ve made a will, so I can cross that off my list

While it’s great to have a will in place, it’s not a case of once-and-done. Life can move pretty fast, with the dynamics of children and grandchildren, marriages and remarriages, or changes to your assets all coming into play.

It’s a good idea to regularly review your will to make sure it’s in line with your current circumstances and wishes.

3. My family will know what my wishes are

Being unspecific in your will can lead to all kinds of heartache and even litigation. You need to set out your wishes in black and white so there can be no room for misinterpretation. For example, if you want to leave money to your friends, you need to name them and declare the amount.

Equally, if you’d like to give to charity, be specific about exactly which one. Even if your family or your executors could take an educated guess about what you mean, this won’t stand up to scrutiny.

4. If I live with my partner, they automatically become my beneficiary

Your co-habiting partner doesn’t have any automatic rights to your estate, so you need to specifically declare in your will if you’d like to leave them any or all of your assets.

If you marry or remarry, this will invalidate any existing will, so you need to make a new one – otherwise the law considers you intestate. And if you have separated from your spouse, your estate could still pass to them if you haven’t divorced, which is why it’s so important to regularly review your will.

5. I’ll avoid probate if I leave everything to my spouse

While your spouse will usually automatically inherit any joint assets, such as your property, this isn’t the case with anything you own independently.

In some cases, financial organisations might ask for a Grant of Probate to allow your executor to administer your will, even if your spouse will ultimately inherit.

6. Estate planning is something to think about in later life

It’s true that as you get older, you’ll likely accrue more assets and be thinking about who your beneficiaries will be. But really, as soon as you have any assets, or children and dependants, it’s a good time to start planning.

This can help you be as tax-efficient as possible, make the most of HMRC allowances and exemptions, and help you start thinking about what your wishes really look like.

7. My pet will automatically be looked after by a family member

The ‘2024 National Dog Survey’ by Dogs Trust found that 99% of dog owners see their pets as part of the family. So, it comes as a surprise to many people to discover that, in the eyes of the law, pets are actually classed as property.

This means that, in some cases, the court could ultimately decide what happens to your pet. Naming who you’d like to look after your pet can circumvent this. Make sure to ask whoever you nominate first to make sure they’re willing. And you could consider leaving them an amount of money to pay for your pet’s care.

Get in touch

It’s easy to understand why these misconceptions exist. Estate planning is complicated and a lot depends on individual circumstances.

As specialists in estate planning, we’re here to help you establish what’s right for you. So, if you’d like to talk to us about any aspect of your estate planning, please get in touch.

Email hello@intelligentpensions.com or call 0800 077 8807.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning or will writing.