Most Estate Planning Attorneys will give you a long list of reasons why you should have a Will, Trust, or an Estate Plan. But is legal planning the right tool for everyone? If you've been wondering whether an Estate Plan would actually benefit you or your family, this is the webinar replay for you.
Learn more about why you should NOT get an estate plan on this free virtual presentation replay with Elder Law & Estate Planning Attorney Bob Mannor. In this replay, Bob will unveil the top eight reasons why you may choose to never create an estate plan as well as dangerous red flags that indicate you may need to see an attorney.
8 Reasons to NOT Have a Estate Plan
- You want to make it as difficult as possible for your family if you get sick or when you die
Not having an estate plan will make it challenging for you and your family. They will have to go through a long waiting period and may pay for more taxes than you may think. Not having an estate plan guarantees that you will go through probate. Certainly, if you don’t do any planning, this will cause a headache to your family, which can lead to arguments.
Recently, we had a client who thought that because their dad managed all their finances, he was excellent at planning ahead. However, he didn’t have any central management, which has made it difficult for the family in the long run. The reality was that when the dad couldn’t manage his finances anymore, the process became aggravating and more difficult to handle because there wasn’t a plan in place.
Although we don’t know what life situation could happen, having an estate plan will avoid many issues along the way.
- You really like the idea of letting a judge decide who is going to make decisions for you if you get sick or get dementia
If you don’t have an estate plan, you are letting a judge appoint a stranger or company to take control of you and your assets if you are not able to take care of yourself or manage your finances anymore. Therefore, having a person you trust make decisions for you is ideal. So, you don’t land in the hands of someone who doesn’t have the best interest for you.
There have been thousands of horror stories regarding this situation. For example, we had a situation with a family, in which the sister who had a lot of money suddenly got ill and wasn’t able to take care of herself anymore.
The family wanted to make sure that the sister would have the best care and live the rest of her life peacefully. Since the sister didn’t have a plan, they figured that because she had the money, they would be able to assign the best care for her. However, one person decided that they were spending too much money on caregivers and the judge agreed. Although the family wanted to give her the best care possible, the judge prevented them from doing so and decided they should hire less expensive care.
Having an estate plan lets you be in control of your future and plan for your family’s needs.
- You like paying more taxes because you believe the government is better at deciding how to spend your money than you and your family
One of the results of letting the government decide how to spend your money is that the government may receive a bigger portion of your money than you had anticipated.
A lot of times people think that by transferring their assets, they will avoid having an estate plan. However, in many cases this is not how it happens, and it can be far from reality. For example, let’s say you have a farm, and you give it to your kids while you’re alive. The kids when they sell that land are going to pay capital gain taxes that they wouldn’t have to pay if you had an estate plan in place. Having an estate plan saves you and your family money in the long run and you avoid any issues along the way.
- You like family fights
One of the reasons why you want to have an estate plan is to make sure you avoid conflict in your family. Many times, when there isn’t a proper plan in place, family members go through long waiting periods because of probate, court and disagreements. This can be completely avoided when you have people you trust to manage you and your family needs.
- You are okay with a stranger making decisions for you
Although you may think right now that being taken care of by a stranger isn’t as bad as it sounds, oftentimes it can be the worst decision you’ll ever make. The reason for this is because the guardian you get may not always be the best quality you want or need.
For example, there was a case in Michigan where a judge appointed a company, “Caring Hearts” instead of the daughter of the husband and wife. The company spent over $400,000 of the people’s money over a course of six months.
The family was very upset because they weren’t appointed and whenever the daughter wanted to visit her dad, the company made it impossible for her to see them. Caring Hearts had put a fence around the house and put restrictions about when the daughter could visit or communicate with her dad. Elderly abuse is very common. Therefore, the reason why you always want to be in control of your future decisions and make sure you appoint someone you trust.
- You’d rather have your son in law or daughter get money from an inheritance than your child
Part of the reason to have an estate plan is to ensure your assets, bank accounts and everything you have will go to the appropriate people. If you don’t have a plan, those assets may go to people you didn’t intend for them to receive anything at all. Even if you’d like your children to have your money, their spouse may also receive a portion of it. Avoid this unfortunate situation by creating an estate plan that protects where your money will go when you die.
- You like to gamble with your life’s savings
If your intention is to leave your money to your recent marriage, but don’t have a plan that will respect your wishes. You are leaving your assets in the hands of a judge. Let’s say you marry for a second time and want your spouse to receive all your money. However, you don’t have an estate plan in place. There is a possibility that your first marriage receives that money in the case that your current spouse dies. Therefore, the reason why you need an estate plan is to avoid any issues regarding who receives your money when you die.
- You like your money going to lawyers and court costs
There was an incident where Samy Davis Jr. bought a will online instead of going to an attorney. Although advertisers bragged about him buying his will online. The reality was that the will went through years of probate and many lawyers in order to be finally approved.
You may think you are saving time and money by not reaching out to an attorney and creating an estate plan, but you’re wasting more time and money in the process of not doing so. Creating an estate plan will save you money, time and avoid your family any stress.
If you would like to talk with our team about how a Will, Trust, or a complete Estate Plan could impact your life or the lives of your family, pick up the phone for a free 15-minute information call. Dial (800)990-6030 or contact us online to begin the conversation.