{"id":333,"date":"2018-10-05T04:27:59","date_gmt":"2018-10-05T04:27:59","guid":{"rendered":"http:\/\/rockwillsonline.com.my\/rockwills-articles\/?p=333"},"modified":"2018-10-05T04:33:00","modified_gmt":"2018-10-05T04:33:00","slug":"4-reasons-you-need-an-estate-plan","status":"publish","type":"post","link":"https:\/\/rockwillsonline.com.my\/rockwills-articles\/4-reasons-you-need-an-estate-plan\/","title":{"rendered":"4 reasons you need an estate plan"},"content":{"rendered":"
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If you own a business, probate court can undermine years of vigilance, publicizing your company\u2019s value to competitors and potential acquirers.<\/em><\/p>\n

SAM EDWARDS<\/em><\/p>\n

By David Bross \u2013 Truepoint Wealth Counsel<\/strong><\/p>\n

Oct 1, 2018<\/strong><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Aretha Franklin\u2019s catalog of hit songs will leave a legacy for generations, but, without a will, the legacy of her financial estate is much less certain. According to her attorney, Franklin meant to create an estate plan, but never got around to it. Now her $80 million estate will spend years in probate court.<\/p>\n

Similarly, at the time of his sudden death, Prince died without a will, and since then, his sizable estate has been entangled in a contentious legal dispute with no resolution in sight.<\/p>\n

Many readers will shake their heads in disbelief: How can celebrities worth tens of millions of dollars just not get around to creating an estate plan?<\/p>\n

As an estate planning professional, I find this situation all too familiar. Time and again, I speak with people who know they need an estate plan, but they don\u2019t prioritize it.<\/p>\n

Many people wrongly believe that estate plans are only for the mega-rich and that \u201cthe rest of us\u201d don\u2019t have enough assets to worry about.<\/p>\n

But without proper estate planning, you risk losing the following.<\/p>\n

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  1. Time and money<\/strong>\u2014 Any estate without a will goes to probate court, which is costly and slow. In Ohio, the average probate decision takes approximately 12-18 months.\n

    And the associated attorneys\u2019 fees and court costs add up. Prince\u2019s estate has already paid out almost $6 million in expenses. Though this case is extreme, the average cost of probate court in Ohio is 2-3% of an estate\u2019s net value. For an estate worth $1 million, the costs could exceed $20,000.<\/p>\n

    In short, probate almost always costs several times more than hiring an estate planning professional.<\/p>\n<\/li>\n<\/ol>\n

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    1. Privacy<\/strong>\u2014 All probate cases become a matter of public record, and the files can be accessed by anyone. A local case in point: On Hamilton County\u2019s website, you can view the details of Marge Schott\u2019s probate case \u2014 the estimated value of her assets, who inherited them and how much each person received.\n

      The consequences can be worse than just the embarrassment of your finances being plastered on the internet. If you own a business, probate court can undermine years of vigilance, publicizing your company\u2019s value to competitors and potential acquirers.<\/p>\n<\/li>\n<\/ol>\n

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      1. Control over your assets<\/strong>\u2014 Perhaps the most serious consequence of probate is that the court decides who receives which assets. Generally, only spouses, domestic partners and blood relatives can inherit assets under succession laws; unmarried partners, friends and charities get nothing.\n

        Probate also can distribute inheritances in counterproductive ways. In the case of a child with disabilities, for example, a lump sum inheritance can be so large that the child can no longer qualify for government assistance.<\/p>\n<\/li>\n

      2. Protections for your family<\/strong>\u2014 Estate planning involves more than just wills; it also helps safeguard your family in the event of unforeseen circumstances.\n

        For instance, though we often associate trusts with the wealthy, they can provide powerful protections for beneficiaries, including from:<\/p>\n