What Happens If You Don’t Have an Estate Plan?

Contrary to popular belief, estate planning isn’t just for the wealthy—it’s for anyone who wants to protect their loved ones and ensure their wishes are honored. Without an estate plan, you leave critical decisions in the hands of the state and/or someone you may not have chosen, and the consequences can be far from what you intended.

What Happens if You Don't Have a Plan? 

1. State Laws Decide Everything

If you pass away without a will or trust, your assets will be distributed according to your state’s intestacy laws. This means the government—not you—chooses who inherits your property. Often, this doesn’t align with your personal wishes.

• Want to leave something to a close friend or charity? That won’t happen without a plan.
• Have a blended family? State laws may not reflect your wishes for stepchildren or non-biological relatives.
• Have pets you would like cared for per your wishes? Without instructions, pets may end up in shelters.

2. Delays and Higher Costs

Your estate will likely go through probate - a lengthy and expensive court process. This can tie up your assets for months or even years, leaving your family waiting and paying unnecessary fees.
In short: More stress, more delays, and less money for your loved ones.

3. Guardianship for Minor Children

If you have minor children and no plan in place, the court will decide who cares for them. This could result in someone you wouldn’t have chosen becoming their guardian. Naming a guardian in your estate plan ensures your kids are cared for by someone you trust.

4. Children or Adult Children with Special Needs

If you have a child with special needs—whether a minor or an adult—estate planning becomes even more critical. Without a plan:

• The court decides guardianship and care, which may not align with your wishes.
• Leaving assets directly to your child could disqualify them from government benefits like Medicaid or SSI.
• Without a special needs trust, funds could be mismanaged or spent too quickly.

5. Digital Assets

Most people don’t realize their digital life may become inaccessible if they die without a plan.

• No one may legally access your email, digital photos, cloud storage, online banking, or social media.
• Some accounts could be permanently locked.
• Cryptocurrency and digital financial accounts could be lost forever without access keys.

6. Family Conflicts

Without clear instructions, disputes among family members are common. This can lead to strained relationships and even legal battles. A well-drafted estate plan helps prevent misunderstandings and keeps peace in the family.

Without written instructions, families often fight over jewelry, heirlooms, photos, and personal keepsakes.

7. Incapacity Planning

Most people think estate planning is only about what happens after death. But planning for incapacity is just as important.

Durable Power of Attorney

Without a durable power of attorney, no one can manage your finances if you become incapacitated.

Healthcare Surrogate / Healthcare Power of Attorney

Without this, doctors may turn to default state law, which may not reflect your wishes.

Living Will

Clarifies your preferences for end-of-life care (life support, feeding tube, etc.).

8. Missed Opportunities for Tax Savings

An estate plan can help minimize taxes and preserve more wealth for your heirs. Without one, your estate may face higher tax burdens, reducing what your loved ones inherit.

Why Do People Avoid Estate Planning?

Even with these risks, many Americans still don’t have an estate plan. In fact, according to USA Today, “Only 32% of adults reported having a will in 2024…” Here are the 8 most common reasons:

1. Procrastination

Estate planning feels like something that can wait. Many people think, “I’ll do it later”—but later often never comes.

2. Belief They Don’t Have Enough Assets

A common misconception is that estate planning is only for the wealthy. Anyone who owns property, has savings, or cares about who will make decisions for them needs a plan.

3. Fear and Emotional Discomfort

Talking about death or incapacity makes people uncomfortable. Avoiding the topic feels easier than confronting it, even though planning provides peace of mind and eases the burden on those left to handle the estate.

4. Perceived Complexity and Cost

Many assume estate planning is complicated and expensive. While advanced plans can involve attorneys and trusts, basic documents such as a will and power of attorney are affordable and straightforward.

5. Lack of Awareness

Some people simply don’t know what estate planning involves or why it matters. They may think a will is enough, overlooking other critical documents like healthcare directives or guardianship designations.

6. Misconceptions About Age

Younger adults often believe estate planning is only for seniors. But accidents and unexpected events can happen at any age, making planning essential for everyone.

Bottom Line

Not having an estate plan means losing control over your legacy. Creating one ensures your wishes are respected, your loved ones are protected, and your assets are managed efficiently. Estate planning is one of the most important gifts you can give your family—peace of mind.

If you have questions about your estate planning, the Trust and Wealth Management Team at Crews Bank & Trust is here to help. Join us for free education seminars and complimentary one-on-one document reviews, or assistance with estate planning and trust administration.