The Things That Can Go Wrong When You Don’t Have a Proper Estate Plan

People have misconceptions that estate planning exclusively benefits wealthy people, and they can delay it for their later years. But unexpected life events can happen at any time, and without a plan in place, the legal and financial fallout can be serious. Estate planning ensures that your wishes are followed, your loved ones are protected, and your affairs are handled efficiently. 

With the help of experienced estate planning lawyers at Dickson Frohlich Phillips Burgess, you can rest assured that all your estates are taken care of.

However, let’s take a closer look at what may happen when an estate plan is missing.

1. Your Assets May go to the Wrong People

When you die without writing a will or trust, the distribution of your estate follows the rules defined by your state’s intestacy laws. Under these standards, there exists a strict sequence that gives preference to spouses and children but does not recognize close friends, stepchildren, or long-term partners. Your estate will pass to state control if your family tree runs out of relatives who can inherit. 

This can result in outcomes that completely ignore your personal relationships and intentions. 

2. Family Conflicts Can Arise Easily

Family members experience both distress and conflicts because of indecisive and unrecorded wishes. A lack of guidance results in many family members fighting about property rights and financial issues, decision-making power, and other matters. The lack of proper guidelines leads to enduring conflicts, which sometimes escalate to legal disputes.

In Washington State, many of these issues can be prevented by working with experienced lawyers such as the Dickson Frohlich Phillips Burgess, who can ensure your plans are clearly outlined and legally binding.

3. The Probate Process Can Be Lengthy and Expensive

When someone passes away, their assets are distributed under a court-provided administrative framework referred to as “probate.” Any estate, no matter how humble, will likely face lengthy delays in probate when it lacks proper planning. While under probate administration, your family members lose access to assets, and the accumulating litigation expenses become a significant financial burden.

According to the American Bar Association, probate expenses lead to substantial decreases in estate value unless specific plans exist to minimize or prevent probate.

4. Your Estate Could Lose Value to Taxes

Cataloging your estate improperly could result in estate taxes eating away substantially from inheritance amounts received by beneficiaries. When states conduct their own estate taxation along with inheritance taxation, your family will inevitably pay higher than intended amounts if there is no proper plan in place. Missed deadlines or incorrect filings can also lead to penalties or delays in distributing assets.

The Internal Revenue Service outlines key thresholds and filing requirements for federal estate taxes—rules that can be complex without professional guidance.

5. Digital Assets Can Be Lost or Inaccessible

Lack of estate planning for digital assets such as online financial accounts and email, cloud storage solutions, and cryptocurrency will make essential assets and information disappear permanently from the reach of family members. The search for passwords and access to files becomes a challenge for family members, which results in both confusion and permanent data loss.

Conclusion 

The implementation of an organized estate plan brings both protection of your wishes and relief from adversity to your family. It’s not just about distributing wealth—it’s about providing clarity, preserving dignity, and paving a smoother path forward for your loved ones.