Can you afford to NOT have an estate plan?
It is important to consider the value of an estate plan, rather than just the up front cost. The cost of NOT have an estate plan will likely far outweigh the cost of working with an experienced attorney who can provide an expert evaluation of the benefits of an estate plan. This article highlights what NOT having a proper estate plan could cost you. What do you have to lose by not having an estate plan?
1. Probate fees
If you do not have an appropriate estate plan, your estate will pay the costs of probate. In California, these fees are calculated as a total percentage of the estate and does not account for any mortgages or debts. A relatively modest estate that is valued at $300,000 will pay over $18,000 in fees to the executor, attorney, and courts. This does not account for the year or so that is required to complete probate.
By employing a comprehensive estate plan, you can ensure that probate (and the associated fees) are avoided completely.
2. Late fees, foreclosure, etc.
If you are ill or disabled and unable to manage your affairs, who will pay your bills? Does your family have access to your accounts or cash on hand to pay your bills? Do they even know what bills to pay?
A properly completed estate plan not only address what will happen if you pass away, it will ensure that your selected agents can efficiently manage your affairs if necessary during your lifetime.
3. Your health and wishes
If you have a pulse, you should have an estate plan. This is because a complete estate plan will include your medical directives. These directives ensure that your family or agents know what you want to happen and they will not be left guessing as to what you would want. More importantly, it will ensure that your are not subjected to any medical procedures you do not want.
4. Total loss of your legacy
It is important to remember that even when somebody with modest assets passes away, the total sum of their bequests can represent a sizable amount. Life insurance, 401ks, and pensions can be cashed out. Real property and securities can be liquidated. All of these assets can combine to represent hundreds of thousands or even millions of dollars. Heirs who receive these amounts can become prime targets for hangers-on, divorce attorneys, civil lawsuits, or other creditors.
A proper estate plan, such as a continuing trust, can protect these assets not just during a persons lifetime, but also after they have passed their assets to their heirs.
As with anything in life, the value of a well prepared estate plan can far outweigh the intial costs. This is why Hassell and Hyatt offers free estate planning consultations for our clients. Schedule your free consultation today by calling (916) 900-6206.
