Most Couples Don’t Have an Estate Plan. Here’s Why That’s a Major Mistake

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More than half — 52% of couples — in the United States do not have an estate plan in place, according to a study conducted by Ameriprise.  This isn’t surprising, because estate planning can seem complicated and unpleasant, especially since it requires you to think about what could happen if you become very ill, are seriously injured, or if you pass away.

Unfortunately, while it’s normal not to have an estate plan, that doesn’t mean it’s not a problem. If you do not have a plan in place, this could end up causing many issues for your loved ones after you pass away. You could also lose the chance to create the legacy that you were hoping to leave behind.

estate planning couple

Why is Not Having an Estate Plan a Big Problem?

If you are among the majority of Americans who doesn’t have an estate plan in place, you are living with some big risks that could affect both you and the people you love. Here are some problems with not having a plan:

  • Your loved ones might be forced to make impossible choices about medical care. Estate planning is about more than just creating a will. You can also create advance directives that provide your instructions about medical care in an emergency situation when you’re incapacitated. Without a plan in place, the court may need to appoint someone to make medical decisions when you can’t. Your family might have to decide whether to approve or withhold life-extending care without knowing your wishes. They could face conflict and be left with guilt, wondering what you’d have wanted.
  • Your assets could be at risk. If you cannot manage your assets because of incapacity, the court might have to appoint someone to do it for you if you haven’t provided instructions on who should be in charge. This person might not have the knowledge or skill to effectively manage your property. You are also vulnerable to losing your assets if you must go into a nursing home, or if they are left to irresponsible heirs without the proper safeguards in place.
  • You could lose the chance to determine who inherits. If you don’t have a will or some other estate planning tools in place that specify who gets your money and property, default intestacy rules will apply. Although the law tries to distribute your assets to close relatives, it won’t necessarily distribute them to the people you would have personally chosen. Since you work hard for your money and property, you should be the one who decides who it goes to after you pass on.

You don’t want your family to face these undesirable outcomes simply because you didn’t want to think about putting an estate plan in place or because you were intimidated by the process of making a plan.

How Can You Get Started With Estate Planning?

Often, people don’t create an estate plan because they don’t know how or aren’t sure where to start. If that sounds like your situation, you should know there are tools out there that can help you to take control of your future. Some examples include:

  • A last will and testament. This is a simple estate plan tool that forms the foundation for most plans. It allows you to do things like name a guardian for your children or specify how your property should be distributed after you are gone.
  • A living trust. This allows you to keep control over your assets while facilitating their transfer outside of the probate process. You can also use a living trust as part of your incapacity plan since you can name a successor trustee who will manage trust assets should you become unable to do so.
  • An irrevocable trust. This can allow you to get more protection for your assets, including protecting against creditor claims or ensuring that you don’t lose your wealth if you must go into a nursing home and need help from Medicaid to pay for the long-term care bills. It requires you to give up more control over your money and property though.
  • Advance directives. These are tools such as a living will and healthcare power of attorney that allow you to make decisions in advance on medical care that you don’t want to receive or that you would prefer to undergo. You can name someone to make these choices on your behalf and make your preferences known regarding specific kinds of medical assistance that you might need if you are incapacitated.

These are just a few of the tools that you may want to consider making part of your estate plan. The best thing to do is to reach out to an experienced attorney who can guide you through the process of making a legacy plan and ensuring that your wishes are known and respected when it comes to your health and financial assets in the future.

Contact the McGee Law Firm at 817-899-3286 today to schedule a free one-hour personal consultation to learn about these and other tools and to join the Americans who have put in place a solid plan for a more secure future.

Brandon McGee
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