Having a comprehensive estate plan in place is crucial if you wish to control what happens to your property after you pass away. However, many people delay creating an estate plan or think they don’t need one. This is a mistake that can lead to an unintended outcome. Without at least a last will and testament, you are considered to have died intestate — and the consequences for your family can be costly, time-consuming, and even contentious.

Here are several things that can happen when you don’t have an estate plan:

Your Family Would Need to Go Through the Probate Process

If you do not have an estate plan, your family would need to go through probate in order for your assets to be distributed. Notably, a will does not avoid probate, but certain estate planning strategies can be implemented to bypass this process. Trusts, joint ownership with right of survivorship, beneficiary designations, and transfer-on-death designations are all tools that can be implemented in a comprehensive estate plan to pass assets directly to the beneficiaries.

Your Assets are Distributed in Accordance with Intestate Law

When you don’t have an estate plan – or at the very least, a valid will – that outlines your wishes, Ohio’s intestate law would determine how your assets are distributed. Specifically, your property would be distributed to heirs as follows:

• Children and no spouse — Your estate is divided among your children.
• Spouse and no descendants — Your spouse inherits all your assets.
• Spouse and descendants from you and that spouse — Your spouse inherits all your assets.
• Spouse and one child from another relationship — Your spouse inherits the first $20,000 from your intestate property, plus half the balance. Your descendants inherit the remainder.
• Spouse and more than one child or descendants of those children — If your spouse is the parent of at least one child, but not all the children, the spouse inherits the first $60,000 of your intestate property, in addition to one-third of the balance. Your descendants inherit the remainder.
• Parents and no spouse or descendants — Your parents inherit everything.
• Siblings but no spouse, descendants, or parents — Your siblings inherit everything.

Significantly, when assets are distributed in accordance with the intestate law, it can result in an outcome you had not intended. It doesn’t account for individual preferences or complex family dynamics. In addition, you might wish to provide for someone outside your family or distribute your property differently than the law provides. An estate plan can help ensure your specific wishes are met.

The Court Will Determine Your Personal Representative

In a last will and testament, you can name the person whom you wish to serve as executor of your estate. But in the event you do not have a will, or your will does not designate one, the probate court will appoint someone who will administer your estate, ensure your financial affairs are in order, and distribute your assets. Typically, a court would appoint your spouse as the administrator – if you do not have one or they decline, your next of kin would be appointed. If you wish for a person besides your spouse to act as the administrator, it's essential to name one in your estate planning documents.

Estate Taxes Increase Without Proper Planning

While there is no estate tax in Ohio, there are still federal taxes that may come into play. However, the taxes can be minimized or avoided with proper estate planning. A wide variety of trusts can be used, depending on your specific objectives. Additionally, since a trust allows assets to be transferred outside your estate, these tools can avoid probate — and the assets would be transferred directly to the beneficiary.

A Guardianship or Conservatorship May Be Put into Place for Incapacity

An estate plan shouldn’t only address what will happen to your property when you pass away — it should also include a plan for incapacity. If you don’t have one, the court will determine who will make decisions for you. For instance, without a plan naming someone to act as your healthcare power of attorney, your family might have to petition the court for a guardianship if you are incapable of making your own medical decisions. Similarly, if you become incapacitated and are unable to manage your own financial affairs, the court might need to put a conservatorship in place.

Contact an Experienced Ohio Estate Planning Attorney

Estate planning can feel overwhelming, but an experienced and compassionate attorney can guide you through the process. At Middleton Law Offices, we offer personalized time and attention to every client and work closely with them to create tailored estate plans that meet their objectives.

Located in Bowling Green, Middleton Law Offices has been serving clients in Ohio regarding their estate planning matters for more than a century. Contact Middleton Law Offices today at 419.548.0196 for a consultation to learn how we can help.

Articles appearing in this column are intended to provide broad, general information about the law. This article is not intended to be legal advice. Before applying this information to a specific legal problem, readers are urged to seek advice from a licensed attorney.