Making an estate plan is an important way to support your loved ones. When someone fails to create an estate plan, it can create several different challenges for a family.
Taking action and starting the estate planning process can prevent unnecessary delay, hardship, and uncertainty. You should be aware of these three problems that can arise from not establishing a plan for your estate.
1. State law will determine the disposition of your estate
Some people do not bother to draft wills or establish trusts because they assume that their families know their final wishes. However, putting family members in the position of having to make decisions on your behalf is neither practical nor effective. State law rather than families will ultimately determine what happens with a deceased person’s assets and interests.
2. Your estate may not have the best executor
An executor has total responsibility for administering an estate. When you do not appoint an executor, you may sacrifice the opportunity to have the best person manage the process for your family.
3. You may be unable to adequately provide for beneficiaries
Estate planning gives you more options than just lump-sum payments. Structuring payments helps assure that minor children have the financial resources that they need. Also, it can protect people from having to forfeit all of their inheritance to creditors
Without a plan in place, it may be harder for you to support your family how you would like to. Consider what you want to happen with your estate and avoid putting your family in a precarious situation.