Drafting an estate plan offers numerous benefits, but not every adult American has one. According to Caring.com’s 2024 survey, only 32% of Americans have a will. People have different reasons for not having a will, with the common ones being they don’t believe they have enough assets to create a will and don’t think they need one due to the current economic environment.
It’s vital to protect your assets, even if you believe they are few. Dying without a will (dying intestate) may disadvantage you because:
You won’t state your wishes
If you die without your will, the state will distribute your estate according to a particular criterion, which may not be the best for your loved ones. With a will, you can distribute your assets based on factors that will benefit your loved ones significantly.
For example, if you have a beneficiary with special needs, you will know how to fund them to ensure their needs will always be met. If you have a beneficiary with a substance abuse or gambling problem, you will determine the best way to pass their inheritance to ensure they don’t blow it all. These are things the court may not do effectively.
Further, a will can help you distribute sentimental items efficiently. You know which loved one will greatly appreciate that necklace or recipe.
Additionally, if you have a minor child, dying intestate means you don’t choose the most suitable guardian for them. You want to ensure your child will be taken care of by a party you believe is best for the job.
Your family members may have a more difficult time
Losing a loved one is devastating, but dealing with a complicated process to administer an estate can worsen the experience.
Dying intestate can be disadvantageous. Learn more about estate planning to make informed decisions sooner.