We often discuss the benefits of estate planning, but understanding the consequences of failing to plan is just as important. Without a proper estate plan, your assets may not be distributed according to your wishes. Here’s what can happen if you don’t have an estate plan in place.
1. Your Assets Will Be Distributed by the State
If you pass away without a will or trust, your estate assets will be distributed according to intestate succession laws. This means that the state—not you—determines who receives what, based on a strict formula. Unfortunately, these laws do not consider personal relationships, estranged family members, or blended family dynamics.
2. Some Assets Are Not Subject to Intestate Succession
Certain assets may bypass intestate succession laws, including:
Funds in an IRA, 401(k), or other retirement accounts
Property held in joint tenancy or tenancy by the entirety
Proceeds from life insurance policies
Payable-on-death bank accounts
Securities in a transfer-on-death account
However, most other assets are distributed according to state laws, which may not align with your wishes.
3. Blended Families Face Unique Challenges
For individuals who have remarried or have children from multiple relationships, intestate succession can create unintended conflicts. Without an estate plan, the state determines whether your current spouse or ex-spouse inherits your assets. If you have children from different marriages, the state will decide how your estate is divided among them—potentially creating discord among family members.
4. Your Children’s Financial Future May Be at Risk
If you have minor children or children who are not financially responsible, an estate plan allows you to designate how and when they will receive their inheritance. Without such protections, their inheritances could be quickly squandered due to poor financial decisions or taken advantage of by outside influences.
Plan Ahead to Protect Your Loved Ones
An estate plan helps ensure that your assets are distributed according to your wishes, reduces the likelihood of family disputes, and provides financial security for your loved ones. At The Lansky Law Firm, we assist families in creating estate plans tailored to their unique needs.
Contact The Lansky Law Firm Today
📍 6800 Poplar Ave #225, Memphis, TN 38138
📞 (901) 767-7006
Take control of your legacy. Schedule a consultation with The Lansky Law Firm today.
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