Top 10 Objections to Creating An Estate Plan

The 10 Most Common Objections to Creating an Estate Plan

Have you been finding reasons to put off creating an estate plan? Perhaps you think, "My kids will know how to divide my estate," or "I’ll do it later since I’m in good health," or even, "My estate isn’t large enough to need a plan." Maybe discussing death feels too morbid. If these excuses sound familiar, you’re not alone. Many share these sentiments. Life is unpredictable and often throws financial and personal curveballs our way. In this blog, we will address the most common objections people have to creating an estate plan. Additionally, we’ll discuss real-life scenarios where individuals were caught off guard because they lacked an estate plan, highlighting the importance of being prepared.

1. Procrastination - Estate planning often feels like a task that can be postponed, especially in the face of immediate daily responsibilities and busy schedules. Many individuals prioritize work, family, and other pressing matters, leading to a delay in addressing long-term planning. The thought of estate planning can seem less urgent compared to day-to-day activities, causing many to push it to the back burner.
2. Perceived Complexity - The legal and financial aspects of estate planning can seem overwhelming. The process involves understanding various documents, laws, and financial instruments, which can be intimidating for those unfamiliar with legal jargon and financial planning. This complexity can create a fear of making mistakes or not fully grasping the necessary steps, causing individuals to avoid starting the process altogether.
3. Cost Concerns - A common misconception is that estate planning is prohibitively expensive, deterring many from pursuing it. While there are costs involved, such as attorney fees and document preparation, these expenses can be manageable and are often outweighed by the benefits of having a clear plan in place. Additionally, there are various levels of estate planning services available, making it possible to find options that fit different budgets.
4. Lack of Awareness - Many people are not fully aware of the importance and benefits of estate planning. Without proper knowledge, they might not understand how an estate plan can protect their loved ones, minimize taxes, and ensure that their wishes are honored. Educating individuals about the advantages and peace of mind that estate planning provides can help address this lack of awareness.
5. Misconception of Wealth - Some individuals believe that estate planning is only necessary for the wealthy, thinking their assets are too modest to require such planning. In reality, estate planning is beneficial for everyone, regardless of the size of their estate. It helps in distributing assets according to one’s wishes, reducing legal complications, and providing clear instructions for loved ones.
6. Discomfort with Mortality - The thought of one’s own death or incapacitation can be deeply uncomfortable and distressing. Estate planning requires confronting these realities, which can be emotionally challenging for many people. This discomfort often leads to avoidance, as individuals prefer not to dwell on the inevitable.
7. Perceived Irrelevance - Younger individuals or those in good health often feel that estate planning is not urgent for them. They may believe they have plenty of time to deal with it later, not considering the unpredictability of life. Accidents, sudden illnesses, and unforeseen events can happen at any time, making it crucial to have a plan in place regardless of age or health.
8. Family Dynamics - Concerns about potential conflicts or disagreements among family members can deter individuals from creating an estate plan. People often fear that addressing asset distribution might stir up tension or disputes within the family. However, having a clear and legally binding plan can actually help prevent conflicts by setting clear expectations and reducing ambiguities.
9. Trust Issues - Deciding who to trust with the responsibility of managing one’s estate can be difficult. People may struggle with identifying a trustworthy executor or guardian who will respect their wishes and act in the best interest of their loved ones. This challenge can cause hesitation, as individuals want to ensure their affairs are handled appropriately.
10. Underestimating the Consequences - Many individuals believe that if they don’t create an estate plan, everything will somehow work out on its own. They might not fully understand the potential negative consequences, such as the state making decisions on their behalf or prolonged legal battles among heirs. Without a clear plan, assets might not be distributed as desired, and loved ones could face unnecessary stress and complications.

Negative Impact of Not Having an Estate Plan In Place

Not having an estate plan in Oklahoma can lead to several negative consequences, impacting you and your loved ones. Without a plan, the state’s intestate succession laws will determine how your assets are distributed, which may not align with your wishes and can cause disputes among family members. The probate process, required for estates without a will or trust, can be lengthy, complex, and expensive, depleting the estate's value and leaving less for your beneficiaries. Additionally, the absence of an estate plan can lead to misunderstandings and conflicts among family members, potentially resulting in legal battles and strained relationships.

Will Your Wishes Be Carried Out with Your Estate?

You also lose control over who manages your estate, how your assets are distributed, and who will care for your minor children, as the court will make these decisions based on statutory guidelines that may not reflect your preferences. Tax implications can also be significant, as proper estate planning can help minimize estate and inheritance taxes, protecting your estate’s value. Moreover, without documents like a durable power of attorney or a health care proxy, decisions about your financial affairs and medical care during incapacity may be left to the courts, leading to delays and decisions that may not reflect your wishes.

Impact Of Minor Children

For those with minor children, the lack of an estate plan means the court will decide their guardianship, potentially disregarding your desires. Special needs beneficiaries may lose government benefits without proper planning tools like special needs trusts. Business owners may face operational disruptions and financial instability without a succession plan, jeopardizing the business’s future. Overall, not having an estate plan results in a loss of control, increased costs, potential family conflicts, tax burdens, and uncertainty for your loved ones. Creating a comprehensive estate plan ensures your wishes are honored, your family is protected, and your assets are managed according to your preferences.

Ball Morse Lowe Estate Planning Attorneys

The experienced attorneys of Ball Morse Lowe provide thoughtful solutions by implementing carefully crafted estate plans for our clients. We will work closely with your trusted financial advisors and accounting professionals to achieve peace of mind, provide clarity, and leave a lasting legacy. Call 405.701.5355 or email clientintake@bml.law to set up a consultation today.

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