There are many dangers of not creating an estate plan. Here are three potential problems to be aware of:
1. The probate process. Unless you have the appropriate estate plan in place, your property will go through the probate process after you pass on. While this may not be a big deal to you, since you are gone, it can be a burden to your heirs.
The probate process can take a long time to complete. On top of this, it can be costly. When you combine the cost of probate with other expenses, such as inheritance tax, you are not leaving behind nearly as much as you thought.
2. Your property could end up in the wrong hands. It is only natural for you to want your property to end up with the right person or people. If you don’t have an estate plan, however, there is no way of knowing if this will happen.
Every state has laws of intestate succession, which determine what happens to your property should you die without a will or other type of estate planning document.
3. Lead to trouble within your family. The lack of an estate plan can lead to a variety of problems for those you leave behind. For example, somebody who always relied on your support, such as a disabled child, may no longer have what he or she needs to live comfortably.
It is common for family members to fight over possessions, often times leading to animosity that lasts for many years.
These are just some of the many dangers of not creating an estate plan. It may take some time and money to create a plan you are comfortable with, but it is well worth it when everything is said and done.
If you have any questions regarding the estate planning process, including why this is important for somebody in your position, it is time to contact us for a consultation.