Final answer:
The false statement among the options is that a will is only necessary for those with a large estate. Wills are crucial for expressing one's wishes regarding asset distribution and guardianship nominations regardless of the estate's size, while trusts serve to transfer assets privately.
Step-by-step explanation:
The statement "You only need a will if you have a large estate" is not true regarding a will. A will is a document that states the wishes of how one would like their assets transferred upon death, regardless of the estate's size. Additionally, a will allows individuals to express personal values, nominate guardians for their children and executors for their estate, and specify beneficiaries for their property. Trusts, often used alongside wills, serve to pass on assets privately, outside of probate court. For individuals who wish to articulate medical preferences in case they become incapacitated, a living will or advance directive is employed, which can include details like a Do Not Resuscitate (DNR) Order and healthcare proxies.
The notion that only large estates require wills overlooks the importance and benefits of having a will for any sized estate. It is important to understand the implications of dying intestate, where state laws determine asset distribution, often not reflecting the deceased’s personal wishes. Additionally, discussing inheritance and estate tax, which in the U.S., applies predominantly to very large estates, shows the limitation on wealth transfer to heirs and opens up debates on inheritance rights and taxation.