Consequences of Not Making an Estate Plan

Posted by Alan Finkel on November 10th, 2022

Many folks believe that estate planning is only for the elderly, but waiting to create an estate plan carries several risks. What problems can arise if you die without an estate plan? The law, not your wishes, will be used to divide your estate. If you die without an estate plan, the law determines who receives your assets and how much they receive. This excludes your wishes from the calculation and may result in your loved ones not receiving family heirlooms, savings, or other assets you specifically requested.

If you have relatives with special needs, their benefits may be jeopardized

When your loved ones rely on government assistance, they must adhere to strict income and asset limits to maintain their eligibility. Receiving a large sum of money outright may jeopardize those benefits, whereas a well-planned trust can protect those benefits while also providing for your loved one. 

A lack of an estate plan affects more than just the assets your loved ones receive. Orlando intestate succession law focuses on distributing a person's assets among their spouse and kids, with their parents or siblings inheriting if they do not have a spouse or children. This means that if you do not make a plan, your estate will be left to friends and relatives other than your immediate family, stepchildren, and other loved ones.

With an estate planning checklist, you can take the stress out of end-of-life planning

Planning for your death can be stressful and overwhelming. When you stop to think about it, your estate plan can help protect your loved ones mentally, emotionally, and financially.

Instead of postponing estate planning, make the estate planning checklist to prepare for each process step. We'll compile best practices into an easy-to-follow format that you can use to speed up the process. Work through the checklist with your attorney, financial advisor, and tax advisor. This way, you'll check every box and create a comprehensive plan for yourself, your loved ones, and your personal property.

Important medical decisions may be called into question

Estate plans are more than just plans for a person's death. They can also outline your wishes and appoint someone to manage your finances or make healthcare decisions in the event that you become incapacitated due to illness, injury, or old age. Without a plan, your care may not be in accordance with your wishes. While none of us can predict the future, making an estate plan is one way to mitigate these risks and provide for your loved ones regardless of what happens in the years ahead.

Note: Don't mix up "will preparation" and "estate planning." A will is an essential component of your estate plan, but an estate plan provides a comprehensive strategy for your loved ones and assets after your death.

Have any questions? Consult an Estate Planning Lawyer

While estate planning may appear to be simple, errors are possible. Even the slightest mistake can prevent your estate plan from being carried out. This would necessitate estate litigation or the resolution of other complex disputes for your family and loved ones. Contact an expert Estate Planning Attorney in Orlando, FL, to start estate planning. We can offer you the assistance you require to navigate this complicated process.