You do not need a celebrity-sized estate to leave your family with difficult decisions.
When Prince died in 2016, he left no will. By January 2022, nearly six years later, the parties had finally agreed on an estate valuation of $156.4 million. His estate involved complicated assets and tax issues, but the absence of a will left no written direction from Prince about who should inherit his probate estate.
For most families, the numbers are smaller, but the questions are just as personal.
Who receives the house? Who handles the finances? What happens to the business? Did you intend to provide for a longtime partner, a stepchild, or a favorite charity?
Without an effective plan, the answers may differ from what you would have chosen.
Your family knowing your wishes is not enough
Families often have conversations about inheritance. Someone may remember a promise about the house. Another person may recall a different conversation.
Those memories do not replace legally effective estate planning documents. When property passes through intestate succession, state law determines the recipients. Other assets may pass through ownership arrangements or beneficiary designations, which is why reviewing your accounts matters alongside preparing your documents.
Think beyond who gets what
A useful estate planning conversation should also address who can manage your assets, whether beneficiaries need help handling an inheritance, and what information your family will need.
For business owners, that includes practical questions: Who understands the business? Where are the governing agreements? Who should your family contact?
Start with a clear inventory of your property, accounts, and business interests. Then consider the people you want to provide for and the person best suited to carry out your plan.
Prince’s story is a reminder that success and wealth do not automatically come with an estate plan. Making time to plan gives your family direction when they will need it most.
Voorhees Law Group, PC helps individuals, families, and business owners in Chino and Yorba Linda create estate plans tailored to their lives. Contact our office to begin the conversation.