Estate planning is one of those tasks people don’t think they personally need to do, or it’s only for people who are wealthy with assets, property or businesses that need taking care of when they die.

But estate planning isn’t just for the wealthy, far from it, it’s for everyone who has anything that needs protecting when they are not here or when someone is ill, a relationship breaks down or when things don’t go to plan.

Let’s take a look at some reasons why estate planning matters more than you might think.

Your Partner Might Not Have Legal Protection

If you’re married or in a civil partnership, these carry automatic legal rights. However, cohabitation does not. If you’re not legally married and you die without a will, then they have no automatic rights to inherit anything, regardless of how long you’ve been together, whether you own a home jointly or how financially dependent they are on you.

They might be able to make a legal claim against the estate; however, nothing here is automatic, which is why estate planning is vital for these relationships. You can outline your wishes, and your written will will dictate what happens next if it’s legally binding.

The Wrong Person Could End Up Raising Your Children

If you have children and you die without naming a guardian, the decision over who raises them then passes to the court. This might not end with your preferred choice being chosen as a suitable person to raise. The court process also takes time and creates uncertainty at times when your children need love, care, compassion and security. 

Naming a guardian in your will costs nothing, but having it stated and in a properly drafted document gives everyone peace of mind in this situation.

Blended Families Create Legal Complexity

Families aren’t as clear-cut these days as they once were, and when you’re in a blended family, i.e. second marriages, stepchildren or have children from previous marriages, the legal waters get murky.

You need a clear will, or intestacy rules will apply here. And these rules aren’t made for modern families, far from it.

Assets can pass in ways that exclude the people you love or provide for, as the law does not account for alternative family setups.

Documenting everything in your will and ensuring those you love get what you want to have is the only way to cut down on or eliminate disputes after the fact from unclear estates. Experts like the team at Jones Whyte can help you understand the complexities of situations like this and plan your will, so you cover all possibilities legally.

Your Business Could Be At Risk

If you run a business and you die, what happens next? Not many people think this through clearly, and it’s one loose end you need to tie up before it’s too late. If there’s no succession plan in place, the consequences can be immediate. Who has the authority to make decisions? Who can access accounts? Who manages staff and negotiates with suppliers? Without any documented arrangement, your operations will stall fast, and your business will be worse off for it.

A power of attorney covering your business affairs alongside a clear succession plan removes this uncertainty and protects your business.

Care Costs Can Significantly Reduce What You Pass On

If you need long-term residential care, this can eat into your estate and significantly change what you have left to pass on.

For many people, particularly those with property, a significant portion of what they intended to leave behind can be consumed by care fees.

However, there are legitimate ways to structure your estate to take this into account, but these options require time to put them in place and retrospective planning once care is already needed is more limited and in some circumstances not possible at all.

You Lose Capacity Before You Lose Your Life

Your will only takes effect after your death, but what happens if you lose the capacity to make decisions before then? A lasting power of attorney offers a period where you are alive but unable to make decisions independently. Whether this is due to an illness, injury or cognitive decline, having a person who can take over for you is invaluable at this stage. Without it, your family has no legal authority to act on your behalf, and obtaining that through the Court of Protection is a slow, expensive, and stressful process. While you can, have this arranged prior to not being able to, so you can control what happens in this type of situation.