Estate planning is more than considering who gets your assets after you are gone. It is about negotiating a web of legal considerations, including your will, to fulfill your wishes. Your estate gets divided based on specific estate laws, and a lack of planning can lead to unintended consequences.
What happens if I die without a will?
Dying without a will gives the court power to decide how to divide your assets through probate, which may not align with your wishes. The court will follow a specific order of distribution, which is as follows:
- Spouse: Your spouse will inherit the entire estate unless you have children or other descendants from a previous relationship.
- Children: Your children will inherit equal shares of the estate.
- Parents: If you have no spouse or children, your parents will inherit the estate.
- Siblings: If you have no spouse, children or parents, your siblings will inherit.
- Nieces and nephews: If you have no spouse, children, parents or siblings, your nieces and nephews will inherit equal shares.
- Other relatives: If you have no surviving relatives, other distant relatives, such as aunts, uncles, cousins and others, will inherit your estate.
- The state: Your assets will be handed to the state if you have no surviving relatives.
Setting up an estate plan determines what you can include in your will. If you plan it early, you can spare your loved ones the complications of handling probate and ensure they get what you intend them to.
Taking hold of your legacy
A well-crafted estate plan can prevent unintended consequences, and you can be sure the court distributes your assets according to your wishes. This includes:
- Creating a valid will that outlines how you want your estate to be divided
- Establishing trusts to manage and distribute assets
- Identifying beneficiaries for the life insurance policies and retirement accounts
- Considering powers of attorney and advance medical directives
While you can maintain your estate now, having an established estate plan early on will ensure that your loved ones benefit from what you have built. Seek guidance in creating a plan that aligns with your goals and respects your wishes. With legal representation, you can avoid pitfalls and ensure future generations enjoy your legacy.
