Legal planning is full of myths. Many people think they know how trusts, Wills, and property law work, until a real-life event proves otherwise. The problem is that these misconceptions can leave families exposed, assets unprotected, and disputes more likely.

Shenali Lewke-Bandara of Denham Bramwell Lawyers works with clients across Auckland on relationship property, trusts, and estate planning. She says it’s common for people to be caught out because they’ve never really had open conversations about money, property, or future planning until they sit down with a lawyer.

Myth 1: A trust protects everything

Trusts are widely seen as bulletproof shields for assets. In reality, they only work if managed properly. If the same person sets up the trust, runs it, and benefits from it, courts may decide it’s not a true trust at all. Poor record-keeping, mixing personal and trust funds, or failing to follow legal formalities can all weaken protection.

A trust can be a useful tool, but it isn’t a guarantee. Without careful management, assets thought to be untouchable can end up back in the pool of relationship property.

Myth 2: Marriage makes ownership simple

A lot of people believe that once you’re married, every asset is automatically split down the middle. The law is more nuanced. What really matters is whether an asset is classed as relationship property or separate property.

The family home, for example, is almost always relationship property, even if one partner owned it before the marriage. But other assets, like an inheritance, may not be.

This means couples can’t assume 50/50 across the board. Understanding the difference between separate and relationship property, and putting agreements in place where needed, is the only way to avoid confusion later.

Myth 3: DIY Wills are enough

It’s easy to think you can just write your wishes down and call it a Will. But DIY Wills often fail because they don’t meet formal requirements or because they overlook the realities of blended families, stepchildren, or moral obligations to a spouse or children.

Even when assets are distributed as intended, disputes can arise over sentimental belongings. Without clear instructions, those closest to you may end up in conflict.

Myth 4: Your spouse can automatically make decisions for you

Many people assume their partner can handle things if they lose capacity. In practice, without Enduring Powers of Attorney, your spouse may have no legal right to act. That can mean delays, court applications, and added stress at an already difficult time.

An EPOA ensures someone you trust can step in quickly and legally if needed.

Myth 5: Legal advice is only for when problems arise

It’s common to delay seeing a lawyer until a crisis hits. But the best time to get advice is long before you need it. Early planning makes it easier to set up trusts correctly, draft enforceable Wills, and put protections in place around property.

As Shenali explains, approaching a lawyer is less about having all the answers, and more about asking the right questions. The sooner you start, the more options you have.

Clearing up the myths

Trusts, Wills, and property law are powerful tools when used correctly. But relying on assumptions or second-hand advice can leave gaps that only show up when it’s too late. By understanding what’s true and what’s not, you can protect your assets, reduce disputes, and give your family peace of mind.

Disclaimer: This article is based on a podcast featuring insights from experienced professionals and is intended for general information and inspiration only. While we aim to share valuable guidance, please seek personalised advice from qualified professionals before making decisions about your property, finances, or renovation plans.