Many people put off estate planning because they believe that young people or people without significant assets do not need to have a plan. However, this can leave you without a plan when you need it most. What should you know about passing away without an estate plan?
If you do not have an estate plan, the law defines who receives your assets
When someone does not have an estate plan, Ohio’s intestate succession laws determine what happens to their assets after they pass away. Here is a general overview of how this works:
- If you have a spouse and children: With a surviving spouse and children, the distribution depends on whether the children are also the spouse’s children. If all the children are with the surviving spouse, the spouse gets everything. If some children are from another relationship, the spouse gets the first $50,000 and half of what is left. The kids share the rest equally.
- If you have no children but have a surviving spouse: If there are no children but a surviving spouse, the spouse inherits everything.
- If you have children but no surviving spouse: If someone is unmarried or widowed when they pass away, the children inherit everything. Each child will receive an equal share.
- If you do not have a spouse or children: Without a spouse and children, the estate will go to other relatives. This starts with parents, then siblings and further extended family if necessary.
- If you do not have living relatives: If there are no living relatives, the state will claim your possessions.
This means the law decides who gets your things, not you. As a result, the distribution may not reflect your personal relationships or intentions.
The law decides what your loved ones inherit
Ohio’s laws also determine what your family inherits. This is usually based on monetary value, not personal importance, which can lead to unintended consequences and conflicts. Sentimental items or assets that you wanted to give to specific people may not end up with the person you wanted.
If you have children, the court makes decisions about who cares for them
Parents who fail to create an estate plan have another challenge to consider. Without naming a guardian, the court chooses who looks after your children. The court tries to pick what is best for the kids. However, they may choose someone you would not have chosen. The court’s choice may also lead to conflict within your family.
The probate process may be more challenging
Without an estate plan, the probate process can become long and costly. The court’s involvement in asset distribution and guardianship decisions may require additional legal fees and result in delays. This can add stress to grieving family members and reduce the value of what you leave behind.
You can avoid these challenges by creating an estate plan
Making an estate plan ensures that your belongings go where you want and your loved ones have support. Without it, Ohio law makes those decisions for you. This makes it important for people at any stage of life to create a plan.