Myth: My will covers all my assets, including my digital accounts and cryptocurrencies.

Fact: While a will is essential for traditional assets, it often falls short for digital assets. Many digital platforms have terms of service that dictate how accounts are handled after death, potentially overriding a will. Furthermore, a will typically doesn't provide the specific login credentials, private keys, or detailed instructions needed to *access* digital assets like crypto wallets or online investment accounts. Specific digital estate planning, legal authorizations (like RUFADAA), and a comprehensive inventory are crucial for ensuring access.

Myth: I don't need to educate my heirs about my finances; they'll figure it out or hire someone.

Fact: While heirs can hire professionals, a lack of foundational understanding can lead to mismanagement, disputes, or even the loss of assets they don't know exist. Without your guidance, they might not understand your investment philosophy, the tax implications of certain assets, or the specific instructions for accessing complex digital holdings. Proactive education empowers them to make informed decisions and preserves your legacy more effectively than leaving them to "figure it out."

Myth: My Social Security benefits will be enough to cover my retirement expenses.

Fact: For most individuals, Social Security benefits are designed to replace only about 40% of pre-retirement income, not 100%. The average monthly Social Security benefit for retired workers in 2026 is projected to be around $1,900. Relying solely on Social Security would require a drastic reduction in lifestyle for many. It's crucial to supplement these benefits with personal savings, investments, and other retirement income sources to maintain your desired standard of living.

Myth: All inherited assets receive a "step-up in basis," so heirs won't pay capital gains taxes.

Fact: While many inherited assets, particularly those held in taxable brokerage accounts, do receive a "step-up in basis" to their fair market value on the date of the decedent's death (or an alternative valuation date), this is not universally true. Assets held in inherited retirement accounts (like IRAs or 401(k)s) do *not* receive a step-up in basis; distributions from these accounts are generally taxed as ordinary income to the beneficiary. Understanding these distinctions is critical for tax planning.

Myth: I should claim Social Security benefits as early as possible at age 62.

Fact: Claiming Social Security at age 62 permanently reduces your monthly benefit amount by up to 30% compared to claiming at your Full Retirement Age (FRA), which is 67 for those born in 1960 or later. Delaying benefits past your FRA, up to age 70, can increase your monthly payment by 8% per year. While claiming early might be necessary for some, for many, delaying benefits can significantly boost lifetime income, especially if you have other income sources or expect a long lifespan.

Myth: Medicare covers all my healthcare costs in retirement.

Fact: Medicare provides substantial coverage, but it does not cover everything. It has deductibles, co-pays, and coinsurance, and it generally doesn't cover long-term care, routine dental care, eyeglasses, or hearing aids. Many retirees opt for supplemental insurance (Medigap) or Medicare Advantage plans to help cover these gaps. Healthcare costs in retirement can be substantial, often requiring significant personal savings to cover out-of-pocket expenses.

Myth: Estate planning is only for the wealthy.

Fact: Estate planning is crucial for everyone, regardless of net worth. A basic estate plan ensures that your assets (even modest ones), your minor children, and your healthcare wishes are managed according to your desires if you become incapacitated or pass away. Without a will, state laws dictate how your assets are distributed, which may not align with your wishes. For those with digital assets, it's even more critical to have a plan to prevent loss or inaccessibility.

Generational Wealth Transfer: Digital Assets & Heirs | One…