Most people know that having an estate plan is important. But many still delay taking action simply because they do not fully understand what happens if you pass away without a will or trust. Dying without an estate plan is called intestacy, and it comes with serious consequences.
When you die intestate, most, if not all, of your assets will go through probate. Probate is a court supervised process that decides what you owned, what you owed, and who receives your property. This becomes public record, allowing creditors like mortgage companies, car lenders, and credit card issuers to seek payment immediately.
From there, state law, not you, determines who gets your property and when. For example, if your heirs are your two children, the law will divide everything equally even if that does not reflect your wishes. And if your children are minors, the court will appoint a conservator to manage their inheritance. This conservator could be a total stranger and can charge substantial fees.
Once a child turns 18, they receive their inheritance outright which is often far too young to handle significant assets responsibly. And without a valid will, the court will also decide who becomes guardian of your minor children.
A far better alternative is creating a properly funded trust. Assets held in a trust avoid probate entirely. A trust lets you appoint a trusted individual, your trustee, and leave clear instructions for how and when your assets should be distributed.
A will is still important because it helps transfer any assets not already in your trust and ensures your chosen guardians are legally appointed for your children.
The bottom line:
A trust keeps you in control, protects your family’s privacy, avoids unnecessary court involvement, and ensures your children are cared for exactly the way you intend.
If you have been putting this off, now is the perfect time to secure your family’s future.
For more information or assistance, feel free to contact us at (480) 719 7333.
