This is probably the most commonly voiced reason for not creating an estate plan – the cost. People assume that they cannot afford to have a professional estate plan created for them and, therefore, don’t create one. The truth, however, is that NOT creating one is almost always going to cost more in the long run than creating one.
By the same token, creating a mistake riddled estate plan is also going to cost more in the long run. This is why using “fill-in-the-blank” forms downloaded off the internet are not such a good idea. One mistake in a Last Will and Testament, for example, could cost thousands of dollars to litigate when you die.
The cost of probating your estate, if you die intestate (without a Will) could substantially drain your estate of assets. Every penny spent on the probate process is one less penny that goes to your loved ones and family members. Along with the costs involved in probating your estate, another chunk of your assets could go to taxes—more money that could have been saved for loved ones with some careful pre-planning.
Sometimes, the most costly error of all is not creating an incapacity plan. If something happens to you and you are unable to make financial decisions for yourself, you could wind up losing virtually all of your assets if the wrong person is appointed to make those decisions for you.
Whatever the cost of having an experienced estate planning attorney help you create an estate plan, they will undoubtedly be less than the cost of not having one.
- The Magic of Grantor Trusts - November 1, 2023
- IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis - October 26, 2023
- Understanding the Importance of the Simultaneous Death Act - October 19, 2023