Where There Is A Will, There Is A Way
The beginning of any year is marked with the making of New Year’s resolutions. We make resolutions as a way to set goals and create positive changes in our lives at the start of a new year. This tradition is rooted in the idea of a fresh beginning—turning the page on the past and embracing new opportunities for self-improvement. Oftentimes, resolutions revolve around exercise, diet, traveling, finances, and general personal growth. But have you considered adding estate planning to your list of resolutions this year?
As we enter 2025, we at Sequoia Advisor Group believe it is an opportune moment to focus not only on securing your and your family’s financial future, but also on ensuring your legacy and the continued well-being of your loved ones by obtaining an estate plan.
The Estate Planning Gap: A Risk You Can’t Ignore
Estate planning is a critical aspect of a comprehensive financial strategy, yet many individuals delay or overlook it. According to a recent survey, only 26% of Americans have an estate plan in place.[1] This statistic highlights a significant gap between the perceived importance of estate planning and the actions taken. Without a plan, you leave your loved ones vulnerable to unnecessary financial and emotional burdens. If you haven't completed your estate plan, now is the time to set a goal for 2025 and act. Here’s why—and what could happen if you don’t.
The Consequences of Not Having an Estate Plan
One of the most common misconceptions about estate planning is that it is only necessary for the wealthy. Regardless of the size of your estate, having a plan ensures that your assets are distributed according to your wishes and limits the likelihood of conflict. Without at least a Last Will and Testament (a situation known as dying "intestate"), state laws dictate how your assets are allocated. This may not align with your personal preferences, family dynamics, or financial goals, and it can lead to serious complications for your heirs.
For example, in Kentucky, your spouse does not automatically inherit all of your assets under intestacy laws. In fact, if you die without a Will, half of your probate estate could go to your children (or their descendants), living parents, siblings, or nieces and nephews (or their descendants) before your spouse. This could lead to a disastrous financial outcome for the surviving spouse, significant tax consequences, and a broken family dynamic in the face of the loss of a loved one.
Without an estate plan, your loved ones could also face:
Probate Delays and Costs – The probate process can be lengthy and expensive, potentially diminishing the inheritance your family receives if there is conflict, trouble locating heirs, significant creditors, etc.
Family Disputes – In the absence of clear instructions and a well-structured estate plan, disagreements among family members may arise, leading to legal conflicts, strained relationships, and diminished inheritance after attorney’s fees and court costs are paid.
Guardianship Concerns – If you have minor children and haven't designated a guardian, a judge will decide who takes care of them. This judge does not know your family dynamics, your values, or who you believe would best care for your children. Additionally, if multiple family members seek guardianship, this can lead to conflict and broken relationships at a time when your minor children need stability and love the most.
The Importance of a Power of Attorney and Health Care Directive
Estate planning isn't solely about asset distribution—it also involves preparing for situations where you might be unable to make decisions for yourself due to incapacity. Key documents to consider include:
Financial Power of Attorney (POA): This legal document grants someone you trust the authority to manage your financial affairs. Without a POA, your family may need to undergo a time-consuming and costly court process to gain control over your finances—at a time when speed and ease of access may be critical.
Health Care Directive/Living Will: This document outlines your medical treatment preferences if you become incapacitated. Without it, healthcare providers and family members may struggle to make decisions on your behalf, potentially leading to conflicts and additional stress during critical moments.
Taking the Next Step
Our team is dedicated to guiding you through the estate planning process, tailoring a strategy that aligns with your unique circumstances and goals. Though many New Year’s resolutions fail due to unrealistic expectations or lack of planning, estate planning is one resolution that is both achievable and essential.
Imagine the peace of mind knowing your loved ones are protected, your wishes are honored, and your legacy is secure. By acting now, you can alleviate potential burdens on your family, minimize legal and financial complications, and ensure your future is in trusted hands.
Don’t wait—make 2025 the year you complete this essential aspect of your financial planning. Taking action today creates certainty for tomorrow—because where there is a Will, there is a way to secure your legacy and protect those you love.
Written by: Matthew Doane, JD
Director of Estate Planning/Lead Advisor
Sequoia Advisor Group
[1] https://www.thinkadvisor.com/2024/04/23/only-26-of-americans-have-an-estate-plan/