A lot of people think that estate planning is just necessary for the elderly or wealthy. But the truth is that not creating an estate plan can result in negative consequences for you and the people you care about, no matter your age and net worth. To better understand the significance of having an estate plan, speak with an experienced estate planning attorney. Your attorney will tell you that without an estate plan, you or your loved ones may encounter issues that may not be easy to resolve. Such issues can result in family conflicts and outcomes that do not align with your wishes. A complete estate plan includes a will and a living trust. It addresses the issues that can arise following your passing and during your lifetime.
Who Inherits Your Assets When You Pass Away Without a Will?
Dying without a will means the intestate succession laws in the state will determine your inheritors. Such laws can lead to unexpected consequences that are different from what you want. But by creating a will or a living trust, you can decide who gets what and your property will be distributed.
Distributing Probate and Non-Probate Assets
Dying without a will means all assets and properties you own under your name should go through the probate process. The probate court will administer and distribute these assets on your behalf. Jointly-owned assets and assets held in a living trust or with a designated beneficiary do not go through probate.
If you die with a will, the distribution of your property will be based on your wishes. This property will go through probate. Usually, probate administration can be avoided if you develop an estate plan with an attorney’s assistance.
In addition, property distribution is just one of the issues that must be addressed by an estate plan. Estate planning can include naming an estate administrator and guardian to your minor children and those who will manage their inheritance until they reach the age of majority.
Protecting You During Your Lifetime
Despite the existence of a will, your loved ones can still face issues during your lifetime when you become incapacitated and cannot make decisions regarding your healthcare and finances. When this happens, you need somebody to make decisions for you. Under state law, you need to have in place a medical power of attorney to name a person who can make medical decisions for you and a durable power of attorney to designate someone to make financial decisions on your behalf.
Issues that Can Arise without an Estate Plan
Without an estate plan, the state of Texas can make one for you. Also, without clear instructions on the distribution of your assets, your loved ones might be in disputes, which can escalate into time-consuming and expensive legal battles. Siblings and children might argue about how assets should be split. Distant relatives might argue they deserve a share of your estate. Also, loved ones might not agree on who must oversee the estate probate administration. These issues delete your estate through costly legal fees and damage family relationships.
Moreover, without an estate plan, the probate process can become more complex, resulting in delays in accessing the inheritance you left to beneficiaries or heirs. Remember that after you die, your family might urgently need financial support to cover funeral costs, daily living expenses, and mortgage payments. Such delays can create financial hardship for them.
In addition, if you do not create an estate plan, your assets can be mismanaged when you die. This can happen if your beneficiaries do not have experience in handling complex investments or huge sums of money. A trust can ensure your assets will be managed professionally, making sure they are preserved for generations to come.
