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

We talk a lot about the importance of estate planning—but what happens if you don’t have one?

The truth is, you still have an estate plan… it just might be one written by your state, not you. And it probably won’t reflect your wishes.

Let’s walk through what happens when there’s no plan—and why taking even small steps now can save your loved ones time, stress, and money later on.

1. The State Decides Who Gets What

If you pass away without a will (also known as “dying intestate”), your state’s default rules kick in. That usually means:

• Spouses and children inherit everything—even if you wanted others included
• Stepchildren, friends, or charities may be left out entirely
• Your estate may be split in ways that feel unfair or complicated for your loved ones

This process can create confusion, tension, and even legal battles—all during an already emotional time.

2. The Courts Appoint a Guardian for Minor Children

If you have children under 18 and haven’t named a legal guardian, the court will decide who raises them. Even if your family agrees on the best choice, it’s still a formal legal process that can take time—and leave children in limbo.

A simple will allows you to decide who should step in—not a judge who’s never met your family.

3. Assets May Get Tied Up in Probate

Without an estate plan, your assets will likely go through probate—a court-supervised process of distributing your property. Probate can be:

• Slow (lasting months or even years)
• Costly (with fees eating into your estate)
• Public (meaning your financial and personal information is made part of the public record)

Proper planning—like using trusts, updated beneficiaries, or joint ownership—can often help avoid or simplify this process.

4. No One Can Speak for You in a Crisis

Estate planning isn’t just about death. It’s also about protecting yourself during life.

Without a Power of Attorney or Health Care Directive:

• No one can legally make financial decisions for you if you're incapacitated
• Your family may need to go to court to get that authority
• Your medical wishes might not be honored if they’re not clearly documented

Bottom Line: Some Plan Is Better Than No Plan

Even a basic estate plan can help protect your loved ones, reduce costs, and ensure your wishes are honored. And you don’t need to have millions in the bank to make it worthwhile.

At Fiat Wealth Management, we help clients take that first step, then build from there. Whether you’re updating old documents or starting fresh, our goal is the same: give you peace of mind, and give your family clarity.

Let’s make sure your plan isn’t left up to chance.

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952-436-9116 | hello@fiatwm.com