What’s the Purpose of an Estate Plan?

Estate planning can be an easy task to overlook or put off, especially when it involves dealing with tough issues like choosing beneficiaries to receive your assets when you die. Some people may not even consider developing an estate plan because they think they don’t even have an “estate.”
If you understand what an estate plan is, you’ll realize that most people need one. Having any valuable possessions, like a car or bank account, makes this form of financial planning critical to your future security. We’ll cover the purpose of an estate plan and why almost everyone should create one.
What Is Estate Planning?
You might think your financial situation doesn’t warrant estate planning because, for example, you don’t own a second vacation home or aren’t independently wealthy. No matter how simple you think your estate is, it benefits you to develop a plan that preserves your assets and belongings. More importantly, if you have a spouse or children, you want to be sure they’ll be taken care of if you’re not around.
In general, an estate plan helps you accomplish these objectives:
- Preserve your assets and ensure their disbursement after your death according to your wishes
- Identify the people who will get your assets and make sure those wishes are carried out
- Delegate a power of attorney so that someone can make financial and medical decisions on your behalf if you die or become incapacitated
- Arrange for the care of minor children or dependent adults
There are added benefits to developing an estate plan, especially when you seek guidance from a local estate or probate lawyer. Your attorney can help streamline the transfer of your assets to your beneficiaries, reduce your estate tax burden, and even avoid excessive probate expenses.
What Could Happen If You Don’t Have an Estate Plan?
We’ve already discussed how a comprehensive estate plan can protect your loved ones and ensure the secure and efficient transfer of your assets. But what can happen if you don’t have a solid estate plan—or at least a Will–in place? Put simply, what happens to your property is no longer in your hands. Instead, control goes to the state and the courts.
Suppose you have a house and some retirement savings. What do you want to happen to those assets if you should pass away? If you have a beneficiary in mind but don’t create an estate plan, the state will likely intervene, and your belongings might not go to the person you intend. Here are the potential consequences of not having an estate plan:
- Ohio state law could determine the distribution of your assets and property, which might be based on factors other than your wishes.
- Conflict could erupt among your family members, who may have differing views on managing and distributing your assets.
- The court—not you or your family—could decide the care of your minor children or dependents.
- If you don’t have a Will, your estate will likely be subject to attorney’s fees, probate costs, and other costs of administration.
- The probate process could be extended.
An Estate Lawyer in Cincinnati Can Help
An estate plan is appropriate for anyone with children or anything valuable to protect. An estate lawyer can help you get started on a solid plan, answer your questions, and provide the guidance you need to make informed decisions. The team at Donnellon, Donnellon & Miller is experienced in all aspects of estate planning, and they want you to be in control of what happens to your assets and loved ones when you’re gone.