What Happens If You Don’t Have an Estate Plan?

For many, estate planning feels like something that can wait. But the truth is, putting off this essential step can create significant challenges for your family and loved ones – and even jeopardize the legacy you’ve worked hard to build.

So, what really happens if you don’t have an estate plan? Let’s explore the risks, consequences, and why taking action now is one of the best decisions you can make for your future.

The State Decides Who Gets What

Without an estate plan, the distribution of your assets isn’t up to you – it’s determined by state laws. This process, called intestate succession, follows a rigid formula that may not align with your wishes.

Key Risks:

• Loved ones you want to support may be excluded.
• Unintended heirs, like distant relatives, may inherit instead.
• Family disputes can arise over unclear or unwanted outcomes.

Your Family Faces Probate

Probate is the court-supervised process of settling your estate, and without a plan, it can be lengthy, expensive, and stressful for your loved ones.

Key Risks:

• Probate can drag on for months – or even years.
• Legal fees and court costs can significantly reduce the value of your estate.
• The entire process is public, leaving your financial matters open to scrutiny.

Your Wishes May Go Ignored

From guardianship decisions to charitable contributions, your preferences can only be honored if they’re clearly documented in a legal estate plan.

Key Risks:

• The court – not you – decides who will care for your minor children.
• Charities or causes you care about may not receive the support you intended.
• Medical and financial decisions could be made by someone you wouldn’t have chosen.

Unnecessary Tax Burdens

Without proper planning, your estate may face unnecessary taxes, reducing the wealth passed on to your heirs.

Key Risks:

• Federal and state estate taxes could take a significant portion of your estate.
• Tax-efficient strategies, like trusts, won’t be available to minimize the burden.

Take Control of Your Legacy

The good news is that these risks are completely avoidable. Creating an estate plan ensures your wishes are honored, your family is protected, and your legacy is preserved.

At SteelPeak, we’ve made estate planning easier than ever. Our Director of Estate Consulting, Lioness Ebbay, Esq., is here to guide you through the process, answering your questions and helping you create a plan tailored to your goals.