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

Many people put off estate planning, assuming it’s something they can deal with later. Still, you may be thinking, what happens to your assets if you don’t have an estate plan? Without a will or trust, your estate—including your home and everything inside it—will go through probate, a legal process that can be time-consuming, expensive, and stressful for your loved ones. At Grand Strand Law Group, we want to help you understand the importance of having an estate plan and how to protect your assets.

What Is Probate?

Probate is the court-supervised process of distributing a deceased person’s assets when there is no will or trust. Since there are no legally documented instructions on how to divide the property, it is up to the state to determine who inherits what.

The Consequences of Probate

1. The Court Decides Who Inherits Your Property
   • If you pass without an estate plan, South Carolina law dictates who receives your home and assets. This usually follows your next of kin, whether that be children, parents, or siblings. However, if you don’t have an estate plan, you may not get the outcome you wish.
2. It Can Take Months (or Years) to Settle
   • Probate is not a quick process. It can take months, even years, to resolve. This leaves your family unable to access your property in the meantime. Meaning they cannot collect any money, protect assets, or sell belongings as needed.
3. It Can Be Costly
   • Court fees, legal fees, and administrative costs can eat into your estate’s value, leaving less for your family. Plus, it also leaves less money for your care including funeral costs, burial costs, and any outgoing debts that may be passed to family members who cannot afford it.
4. Your Home & Belongings May Be Sold
   • If multiple people are entitled to your home, they may have to sell the property and divide the proceeds instead of keeping it. Items inside—furniture, valuables, and sentimental belongings—may also be sold off to settle debts or legal fees. This can be disheartening for people who wish to keep certain objects, or perhaps keep the property in the family.

How to Protect Your Property with an Estate Plan

To ensure your home and belongings are distributed according to your wishes, consider creating a legally sound estate plan if you don’t already have one. Here’s how to get started:

1. Create a Will
   • A will allows you to specify who should inherit your home, bank accounts, and personal belongings. Without one, the court will decide for you. Remember to include ALL assets, including digital assets, jewelry, cars, etc.
2. Consider a Living Trust
   • A trust can help your estate bypass probate, allowing for a smoother and faster transfer of ownership.
3. Name Beneficiaries
   • Designate beneficiaries on accounts like life insurance, retirement plans, and bank accounts to avoid probate delays. This can also help payments go through a bit smoother and minimize stress for your family.
4. Set Up a Power of Attorney
   • Estate plans aren’t just for after you pass. If you become unable to make decisions for yourself, a power of attorney ensures someone you trust can manage your finances and property in the case of medical emergencies.
5. Create an Inventory of Assets
   • Keep a list of your property, valuables, and key financial documents to make it easier for your beneficiaries to handle your estate. Don’t forget to include everything of value, including band accounts, passwords, and anything else that may be important in the future.

Don’t Have An Estate Plan? Get Started with Grand Strand Law Group

An estate plan is one of the most important gifts you can leave your family. At Grand Strand Law Group, we’re here to help you create a plan that protects your home, assets, and loved ones. 

We are here to make sure you understand the importance of estate planning and protecting your assets. We work to make the process as smooth as possible. Give us a call at 843.492.5422. Learn about how we can help with estate planning now or in the future.