Why is it important to establish an estate plan?

Why is it essential to create an estate plan?

Regrettably, many families neglect the importance of proper estate planning due to the misconception that their assets are insignificant or that their children can independently distribute them. If one fails to establish legal arrangements for asset management and affairs after their incapacity or demise, the intestacy laws of the state will take control. Consequently, incorrect individuals may receive the assets, and estate taxes could be higher.
In the event of passing away without implementing an estate plan, the estate must go through probate, a public and court-supervised procedure. Probate can be costly and delay the distribution of assets among beneficiaries. Furthermore, the absence of clear intentions through thorough estate planning can lead to family disputes, as each member strives to gain the authority to handle the affairs. It is not uncommon for bitter conflicts to erupt among family members over small sums of money or sentimental family possessions.

Sadly, many families don’t do proper estate planning because they don’t believe that they have “a lot of assets” or otherwise believe that their children can just come in and divide their assets by themselves. If you don’t make proper legal arrangements for the management of your assets and affairs after your passing, the state’s intestacy laws will take over upon your death or incapacity. This often results in the wrong people getting your assets as well as higher estate taxes.
If you pass away without establishing an estate plan, your estate would undergo probate, a public, court-supervised proceeding. Probate can be expensive and tie up the assets of the deceased for a prolonged period before beneficiaries can receive them. Even worse, your failure to outline your intentions through proper estate planning can tear apart your family as each person maneuvers to be appointed with the authority to manage your affairs. Further, it is not unusual for bitter family feuds to ensue over modest sums of money or a family heirloom.

Unfortunately, many individuals do not engage in formal estate planning because they believe they do not have “significant assets” or mistakenly assume that their assets will automatically be divided among their children when they pass away. If you do not make appropriate legal arrangements for the management of your assets and affairs after your death, the state’s intestacy laws will take control upon your demise or incapacity. This often leads to the wrong individuals obtaining your assets and higher estate taxes.
If you die without establishing an estate plan, your estate will go through probate, a public, court-supervised process. Probate can be costly and tie up the deceased person’s assets for an extended period before beneficiaries can receive them. Even worse, your failure to clarify your intentions through proper estate planning can cause discord among your family members as each person vies for the authority to manage your affairs. Additionally, it is not uncommon for bitter family disputes to arise over small sums of money or a cherished family heirloom.

Unfortunately, many individuals fail to participate in formal estate planning because they believe they have “limited assets” or wrongly assume that their assets will automatically be shared among their children upon their passing. If you do not make appropriate legal arrangements for the administration of your assets and affairs after your death, the state’s intestacy laws will take control upon your death or incapacity. This often leads to the wrong people receiving your assets and higher estate taxes.
If you die without establishing an estate plan, your estate would go through probate, a public, court-supervised process. Probate can be costly and tie up the deceased’s assets for an extended period before beneficiaries can access them. Even worse, your failure to clearly state your intentions through proper estate planning can fracture your family as each individual vies for the authority to manage your affairs. Moreover, it is not uncommon for bitter family disputes to arise over modest sums of money or a treasured family heirloom.