Estate Planning is the process of working with an attorney to create a legally-binding plan for what will happen to your remaining belongings and property (known as your estate) and any money left (known as your assets) when you pass away. Estate Planning is a method of protecting your loved ones that allows you to have your wishes respected even after death. So what happens when someone doesn’t make an Estate Plan?
When someone dies without making an Estate Plan, their estate enters probate. Those same decisions that are typically made by the person themselves in their Estate Plan are instead made by a Judge in probate court. During probate, a court in the state the individual lived in will look at all of their estate and assets and decide how to divide it. The individual will have no say whatsoever in the process.
When you have a Will, one of the core elements of an Estate Plan, it will dictate how your estate and assets should be divided up in probate. The court will respect that and follow your wishes. When you have placed assets into a Trust, another element of Estate Planning, they will not enter probate at all. They will simply pass immediately on to your chosen loved one at the time of your death. When you don’t have any Estate Plan whatsoever, the probate process can be long, expensive, and emotionally draining for your surviving family members.
Of course, dividing property isn’t the only thing an Estate Plan accomplishes. In your Will, you can elect guardians for your minor-aged children. If anything unexpected happens to you, your chosen guardians will raise your children. If you don’t have an Estate Plan created, those guardianship decisions will be made by the court. If a particular loved one wants to raise your children, and you didn’t make an Estate Plan naming them, they will have to go to court in a guardianship case, which can be difficult.
Another element of Estate Planning is creating a Power of Attorney form. A Power of Attorney gives specific people, who you pick, legal permission to access your medical records and financial accounts and make decisions for you if you end up incapacitated. It is another way to ensure your loved ones are protected in the event of an emergency. If you end up injured or incapacitated with creating an Estate Plan, your family will not be able to make any healthcare decisions or access any of your accounts.
Making an Estate Plan is easy to do, and it pays off for decades to come. If you get injured or pass away without creating an Estate Plan, it means that things will be much more difficult (and much more expensive) for your loved ones. To create an Estate Plan today, contact Miller Law Firm PC! We help you meet your Estate Planning goals!
