People often put off estate planning for many reasons. We make excuses such as….a trust is too costly, I don’t have enough assets to make it worth the effort, or I’m too young, so I’ll worry about it later. But the more lies and excuses you tell yourself, the more you put yourself and your family at risk of losing much of what you’ve worked so hard for your entire life. You leave your heirs tangled up in a web of costly chaos and emotional distress.
Failure To Plan
One major reason estate plans fail is because of the failure to plan. This single mistake could ruin all someone labored for their entire life. By not planning ahead and creating a Will and Trust, you are letting the courts determine the distribution of your assets to your heirs. If your assets total more than $184,500, your estate will go through probate court, which is a very public and costly process that can take months or even years. When your estate is under probate, it means anybody who is interested can access details of your estate, including creditors and even scammers!
Apart from the cost that probate incurs, your estate won’t be easily accessible by your loved ones, if at all. This could impact your loved ones’ access to many essentials and basic life needs, such as food and rent, that they depend on.
Late Planning
Late planning can be just as detrimental as not planning at all. Many young people put off creating a Will and Trust simply because they are young and think they don’t have to worry about it until they’re older. However, it is best to plan when you are physically and mentally well to make important decisions that will protect your family from the courts, especially if you have young children.
How Do You Avoid Probate?
By establishing a Living Trust. Trusts avoid Probate because your assets are held in the name of the Trust and are not exposed. Therefore, they are protected against the risk of litigation. In fact, assets held in a Trust pass directly to your loved ones upon your death without the need for any court intervention whatsoever. This can save your loved one’s time, money, and stress while dealing with the aftermath of your death. It will also preserve your legacy for generations to come.