Top 5 Reasons People Don’t Have an Estate Plan That Will Work: Which One Describes You?

Are you one of the 70% of people who don’t have a Will, Trust, or Estate Plan? Are you one of the 15% of people who have an inadequate plan, whether it’s out-of-date, out-of-state, or done through DIY forms or other reduced legal programs? If so, you are leaving a total mess for your family to sort out when you’re gone that will cost way more time and money than it would take to get a quality plan in place…and you’re letting the state of Texas control what happens to your assets and kids (for you parents out there!). Not exactly the lasting legacy you’d like to leave, is it?

Instead of focusing on healing and celebrating your life, your loved ones will be left with outrageous court delays, family squabbles, and exorbitant fees, only for things to be sorted out according to the State of Texas, NOT YOUR WISHES! And all of it will be a public record! Is that the story you want about the end of your life?

Here are the top reasons people put off getting a proper Estate Plan. Which one fits you?

1. They don’t think they have enough money for it to matter.

You want to know a secret? I really don’t like the expression “estate planning.” Why? Because most people don’t understand what it means. We often hear “I don’t have an estate.” Or “I just need a Will, I don’t need an estate plan.” Well, I’ve got news for you…if you have a home, a car, a bank account…you have an “estate” in the sense that you need to PLAN for what you want to happen when you pass. Also, a Will, a Trust, a Power of Attorney, are all types of Estate Planning. So, yes, you DO have an estate and you DO need an Estate Plan.

You may think your situation simple, but the law is never simple! Banks, title companies, and even the state of Texas don’t discriminate based on what you have when it comes to complicating things. They’re ready to make your family jump through expensive and time-consuming hoops just to gain access to your assets…. or deciding who should take care of your kids!

2. They don’t know what will happen or assume things will happen automatically.

There are a few words that make my soul die inside when clients say them. “Automatic” is one of them. Things do not happen automatically the way you want when you pass. One of the biggest examples is that, in Texas, your home does NOT automatically go to your spouse when you pass away…even if both names are on the title and you bought it together. Read that again! This is a big SHOCK for most people. The state of Texas is going to make your decisions for you, and it won’t happen automatically – it will take extra expense and time your family doesn’t need!

Here are a few decisions the state will make for you:

1. The court will determine the guardian of your children. Your family could end up in court fighting over the kids, or the kids could end up in foster care.
2. The court will determine the trustee of your children’s estate.
3. Your spouse may have to make a yearly report of how s/he is managing any money the state grants to your underage children.
4. The court will determine who inherits your estate.
5. The court will appoint an administrator for your estate.
6. Your court–appointed administrator may have to post a bond to guarantee that s/he is responsibly managing the money the state grants to your underage children.
7. Your family heirlooms may be divided up with one-third going to your spouse and two thirds to your children. If the family cannot agree, the court can have the heirlooms sold and divide the proceeds.
8. If your spouse remarries after your death, his/her new spouse may be entitled to an interest in the assets from your estate.
9. The new spouse will not be legally required to use those assets for your children and s/he will not be required to leave any of those assets to your children.
10. In blended families with children, a new spouse may become partners with stepchildren or possibly an ex-spouse in handling your estate.

3. They think the cost to use a qualified law firm is too “expensive.”

You know what is expensive? Doing nothing. You know what else is expensive? Trying to go the “cheap” route whether it’s DIY forms, Will kits, or reduced-fee legal services. Cheap gets very expensive. If you’re going to do this, you want it to WORK, right? Then the focus should be on VALUE meaning it will cost less in time, money, and heartache when it counts.

Look, you’re going to spend money either way. You might as well spend less now to save more later…and this way you get to make your own decisions rather than the State of Texas deciding for you.

4. They think DIY is better than nothing.

All this does is make probate lawyers more money and clog up the probate courts. It’s only better than nothing…if nothing has happened! Quit often, the DIY forms or reduced legal services ARE nothing…or even worse, because they’ll have to follow the mistakes you didn’t know you were making, such as cutting out your spouse! Yes, this happens often!

5. Procrastination.

Whether because they aren’t sure of who they should leave things to or who to put in charge, or because they feel overwhelmed and just don’t make the time, the biggest reason people put off getting a Will, Trust, or Estate Plan is just plain ol’ procrastination.

We get two types of calls. One, I want to get a Will, Trust, or Estate Plan. Great, we can help and make a huge difference for you and your loved ones. The other call is from a family member or loved one saying, “so and so passed away and we need to know what to do.” As you know, 85% of them don’t have a plan or a plan that will work. 100% of them thought they had more time or could wait. But you don’t know when it’s going to be needed and you can’t do anything when it’s too late.

If you haven’t already, take our exclusive 7 question quiz “What type of Estate Plan do I need” and receive a free report in less than 30 minutes! Take The Quiz