If you ask people why they haven’t made an estate plan, you may get a variety of answers. Some people don’t know what paperwork they need. Others don’t think they have enough assets. Some just find the process overwhelming.
One common trend that you’ll find is that many people understand that they will eventually need to write a will and make an estate plan. It’s not as if they haven’t done so because it’s unnecessary. The problem is merely that they’re putting it off and procrastinating, assuming that they can do it at a later date.
Why is this so risky?
This is a problematic risk to take for two reasons. First, of course, no one knows exactly when they will pass away or how long they have to make an estate plan. Someone in their 40s may assume that they still have 35 years, so drafting a will doesn’t seem all that urgent. But people pass away unexpectedly from injuries and illnesses every day.
The second issue is that, if an unexpected passing does happen, family members have little to no guidance. They’re not even sure about basic things like funeral or burial plans. They have no idea what to do with high-value assets, like a home or an investment portfolio. They don’t even have instructions regarding how to split up family heirlooms and other items with sentimental value.
For all of these reasons and more, passing away without an estate plan increases the odds of an estate dispute. This is why it’s so important to consider the legal steps necessary to get a plan on file.