Who Needs Estate Planning? 7 Types of People Who Need It Most

Estate planning can be a difficult process to go through. Yet, it is one of the most useful things that you can do for both yourself and your family. In allocating your assets, estate planning can reduce family conflicts, reduce taxes on estates passed down for heirs, and eliminate the expensive and time-consuming process for courts to settle. Without an estate plan, you will be rendered intestate and the courts in your state will make some of your decisions for you, which may leave some of your wishes unfulfilled.

Estate planning might sound about as fun as a root canal (and difficult, too) but trust us, it's one of the most beneficial things you can do for yourself and your loved ones. Imagine this: you're crafting a future where family squabbles are minimized, taxes are trimmed, and the courts aren't deciding who gets your prized stamp collection. Sounds pretty good, right?

Despite this, statistics say that a whopping 67% of Americans have no will or estate plan (2022). That's a lot of people entrusting their assets to state law by default. You can avoid this situation by taking a proactive approach to estate planning. Here's an insightful look at the seven types of individuals who would greatly benefit from thorough estate planning:

1. Individuals with Assets Over $100K

If your assets total more than $100,000, congratulations! Now, let's keep it that way for your heirs. Without an estate plan, your beneficiaries might face the daunting and expensive probate process. Probate is essentially the legal procedure that validates a will, and it can often be very time-consuming and expensive for your heirs. Proper estate planning ensures a smoother, faster transfer of your hard-earned assets.

2. Unmarried Partners

For those in long-term relationships but not legally married, estate planning is crucial. Without legal documentation, your partner may not have the rights to your estate or any other assets you wish to transfer, leaving them vulnerable. Estate planning lets you spell out exactly what your partner should inherit, ensuring your wishes are respected. After all, love might not need a certificate, but inheritance sure does!

3. Childless Individuals

No kids? No problem—except when it comes to your assets. You might want your wealth to go to friends, charities, or that one cousin who always remembers your birthday. Documenting these wishes through an estate plan prevents your state’s courts from making decisions on your behalf and ensures that your assets are distributed based on your wishes.

4. Blended Families

Blended families, which might include stepchildren from previous marriages, ex-spouses, and new spouses, face unique challenges when it comes to estate planning. A well-crafted and detailed estate plan helps navigate these complexities by clearly defining the distribution of assets, thereby reducing the potential for conflict among family members. 

5. Owners of Complex or Unusual Assets 

Do you have a business, intellectual property, or some angel investments? These aren't exactly straightforward to pass on.  These types of assets can become much more difficult to transfer without clear directives. An estate plan is essential for providing a strategy for managing and distributing these unique assets efficiently. 

6. Collectors

Whether it's art, antiques, or vintage vinyl, your collection has value—and maybe even sentimental value (which Familial helps you capture).  An estate plan can include appraisals and instructions for the care and transfer of your prized possessions. This way, your collection is preserved or sold just the way you want.

7. Families Living Far Apart

If your family is spread across different states or countries, estate planning is crucial. It helps bridge the distance by providing clear legal instructions on asset distribution. Think of it as a way to keep everyone connected, no matter the miles between you.

Whether you fit into one of these categories or not, estate planning is a smart move. It’s about making sure your wishes are carried out and sparing your loved ones from added stress during difficult times. Remember, it's not just about what you leave behind—it's about the legacy you create.

Visit us at Familial and let’s start long-term planning together.