Death may be inevitable, but the consequences of not planning for it can be horrifying for those we leave behind. A new survey by Caring.com reveals a disturbing trend: only 32% of Americans have a will in 2024, a 6% decline from last year. This increasing disregard for estate planning creates a nightmare scenario for loved ones. From family feuds over possessions to your favorite charity left out in the cold, read on to learn the horrifying consequences of dying intestate (without a will).
The State Divides Your Assets
Dying without a will relinquishes control of your assets. The state divides your belongings according to a predetermined formula that may not reflect your wishes. While this system ensures your family gets something, it bypasses your chance to leave cherished possessions to friends, charities, or specific loved ones.
Your Money May Not Go To Who You Want
Passing away without making a will turns your finances into a complicated game of chance, decided by state laws, not your wishes. Imagine you built a nest egg specifically to leave to your beloved grandchildren. Intestacy laws in your state might distribute it entirely to your adult children, even if they’re financially secure. With a will, you can explicitly state who inherits what, ensuring your hard-earned money goes to the people or causes you hold dear.
No Will Means More Bills
While probate (establishing the will’s validity) is often unavoidable, skipping a will throws your family into financial disarray. They’ll shoulder the burden of researching your assets, locating beneficiaries, and navigating the legal system while grieving your loss. In the US, probate fees typically range from 3% to 7% of the estate value. For a $500,000 estate, this could mean $15,000 to $35,000 in costs. These extra steps translate to a longer probate process, draining your estate with unnecessary fees and leaving less for your loved ones.
Delayed Inheritance
Skipping a will throws your family into financial limbo. The probate process grinds to a halt, delaying your loved ones’ inheritance. Without a clear roadmap, they must painstakingly research assets, locate beneficiaries, and navigate legalities – all while grieving. A will can streamline probate, expediting the process and ensuring your family receives their inheritance sooner. The legendary musician Jimi Hendrix died in 1970 without leaving instructions for dividing his estate. The legal battle over control of the rights to music created by Jimi Hendrix Experience continues.
Your Wishes Become Irrelevant
Intestacy removes your control over asset distribution. Those heartfelt conversations with family about who gets what become irrelevant. The court takes over, following impersonal legal guidelines that may not align with your desires. This can leave loved ones frustrated and powerless, even if they intend to honor your wishes. Without a will, there’s no guarantee of cooperation or a smooth transition of your legacy.
Family Feuds
When you die without a will, tensions can escalate among family members—especially if they have varying financial circumstances. Long-held resentments and economic disparity can turn beneficiaries into adversaries. A will allows you to take control, specify your wishes, and prevent these disputes. It’s your money, your legacy, so ensure it goes where you want it, not where animosity takes it. A well-made will preserves your wishes and fosters peace among your loved ones.
The State Chooses Your Child’s Guardian
A shocking 68% of Americans lack a will, leaving the fate of their minor children to the state. This means a judge, not you, decides who becomes guardian. The chosen person may not align with your wishes, potentially disrupting your children’s lives during a difficult time. Even adult children can mismanage their inheritance without explicit instructions. A will empowers you to ensure your children are cared for and financially secure, even after you’re gone.
Your Pets May Have To Go To The Shelter
Although you can’t directly leave an inheritance to pets, creating a will allows you to provide for their future care. A pet trust lets you set aside funds and appoint a trusted caretaker, guaranteeing your cherished companion receives continued love and financial support. This is especially important considering the staggering statistics: each year, 5 to 7 million pets lose their homes due to owner deaths in the US, with 60% of dogs and 70% of cats euthanized (3-4 million) when new families aren’t found. A will empowers you to be proactive, ensuring your pet finds a loving home and avoids the stress of a shelter environment.
Your Funeral May Not Be Your Choice
Your final farewell can reflect your personality. A will helps you express your wishes for your funeral, ensuring it aligns with your preferences. Whether a somber service or a joyous celebration, a will empowers you to dictate how you’re remembered. Don’t leave your loved ones guessing—use a will to ensure your final act is a true reflection of you.
Heirlooms Can Go To The Wrong Hands
Without a will, your cherished possessions can land in the wrong hands. The court decides who inherits what, potentially placing family heirlooms with someone who doesn’t appreciate their value. A will allows you to designate specific recipients, ensuring these treasures are passed down as intended. Don’t let your legacy become lost – create a will and safeguard your family’s heirlooms.
Your partner Can Lose Their Home
Dying without a will can leave your significant other (unmarried partner) in a precarious position. If you co-own the home, they’re protected. However, if it’s solely yours, intestacy laws might award it to family members, potentially forcing your partner out of their home. A will can safeguard your partner’s future, ensuring they have a secure roof over their head.
Your Family May Have To Pay Higher Tax
While you may not think your estate is substantial, proper planning through a will can minimize inheritance tax burdens for your family. This ensures they receive a larger portion of what you leave behind. Consulting an expert allows you to strategically distribute your assets, maximizing your family’s inheritance and minimizing the tax bite.