Most Arkansas residents don’t understand the risks of neglecting to create an estate plan. While the majority of people in Arkansas die without even creating a will, it’s important to understand the consequences of failing to craft an estate plan – no matter the size of your estate.
Asset Distribution Follows the Law, Not Your Wishes
When you fail to create a will or other estate planning documents, you leave the distribution of your assets up to Arkansas law. That means that you have no choice in who gets what. Additionally, certain loved ones such as friends or distant relatives may not be included in the distribution of your assets. Creating a will allows you to be in control of the distribution of your assets, your beneficiaries and heirs, and who will handle the distribution.
Possible Family Disputes
It’s an unfortunate reality that family conflicts often arise after the death of a loved one. You may have promised your niece a valuable family heirloom, but when it goes through probate, the law dictates that the heirloom must go to someone else. Family disputes can also happen due to a poorly-crafted estate plan. A potential heir may question the validity of your will, which can turn family against one another and create unnecessary disputes over your assets.
Probate Complications
Probate in Arkansas can be a complex process. The act of locating beneficiaries and distributing assets according to state law can be long, expensive, and stressful for those involved. On the other hand, a strong estate plan can avoid many of the complications of probate altogether, which also preserves your privacy. The right estate plan can keep the majority of your assets out of probate altogether.
Guardianship Issues
No parent wants to think of what could happen to their children if they pass away unexpectedly, but it’s important to consider. An estate plan covers more than just your assets because it can allow you to name a guardian for a minor child in case something happens to you, giving you the peace of mind of knowing that your children will be well cared for no matter what.
Financial Burden
Dying without an estate plan can put your assets on hold, which may impact other members of your family. Your estate may also be impacted by creditors, which can otherwise be avoided by utilizing the correct estate planning strategies. Although there is no estate or inheritance tax in Arkansas, estates of a certain size may also face federal taxes if not planned for properly.
No Plans for Incapacitation
Nobody wants to think about what could happen if they unexpectedly become incapacitated, but it’s an unfortunate possibility. Without a healthcare directive or financial power of attorney, you can put yourself and your family at great risk. For example, if you get hospitalized and can’t make your own decisions, you could be left with unpaid bills or having someone make decisions about your care that you don’t agree with. The right estate planning strategies can ensure that you and your family are cared for, even under unfortunate circumstances.
Preserve Your Legacy with an Estate Plan
Everyone can benefit from an estate plan, no matter the size of the estate. An estate planning professional can help you create a custom plan that fits your needs and meets your financial goals while protecting you and your family. At L. Jennings Law, we provide comprehensive estate planning services including:
- Wills
- Trusts
- Powers of Attorney
- Healthcare Directives
- Other strategies based on your needs
Everyone has different wishes when it comes to their estate, and we’re here to ask the right questions to ensure that your wishes are honored. Contact us today to schedule a consultation with an estate planning professional at L. Jennings Law.
