As a financial advisor, one of your critical tasks is guiding clients through complex financial situations, including estate planning. A significant part of this is addressing what can happen if a person dies without an estate plan. This situation, known as dying intestate, can lead to unexpected and often undesirable outcomes.
In Missouri, the law has specific rules for this situation, and it is your job to ensure your clients understand the consequences. Let's break down the basics.
What Does "Dying Intestate" Mean?
"Dying intestate" simply means dying without a valid will or estate plan. Without a written document outlining a person's wishes, the state law will determine the distribution of assets. Unfortunately, this legal route may not align with what the deceased might have intended.
Who Gets What in Missouri?
If a person dies intestate in Missouri, their property is divided according to state laws of descent and distribution. The division might seem straightforward, but it's crucial to illustrate how these laws function using simple examples:
- If the deceased is married with children, their spouse receives the first $20,000 of the estate plus half of the remaining balance. The rest goes to the children.
- If the deceased is married with no children, the spouse inherits the entirety of the estate.
- If the deceased is single with children, the children inherit the estate equally.
- If there are no surviving children or spouse, the estate goes to the deceased's parents. If the parents are no longer alive, then siblings are next in line.
It's easy to see that these default rules may not always align with the person's wishes. For instance, they might want to leave a portion of their estate to a lifelong friend, a caretaker, or a favorite charity – none of which is possible under Missouri's intestacy laws.
What About Probate?
Without an estate plan, the deceased's assets go through probate, a court-supervised process of authenticating a will, settling debts, and distributing property. This process can be lengthy, expensive, and stressful for surviving family members.
Moreover, without a designated executor — as would be identified in a will — the court appoints an executor for the family. The appointed person might not be the one the deceased would have chosen. Also, their decisions may not align with the deceased's wishes concerning issues such as the sale of properties or the settlement of debts.
Avoiding the Pitfalls of Intestacy
As a financial advisor, you can help clients avoid the pitfalls of intestacy through comprehensive estate planning. A well-structured estate plan includes a will, possibly trusts, and powers of attorney for financial and healthcare decisions.
These documents can ensure the individual's wishes are fulfilled concerning the division of assets, the guardianship of minor children, the management of businesses, and the donation to charities. They can also potentially minimize probate and estate taxes. Luckily, GoGo Estate has your back. When you refer clients to GoGo Estate, they can purchase and complete a comprehensive estate plan in a matter of minutes. By doing so, they can help avoid some of the pitfalls and hassle of dying intestate.
Looking Forward
As you help your clients navigate their financial futures, be sure to stress the importance of creating an estate plan that reflects their desires. It's not enough to accumulate wealth; one must also make deliberate plans for how it should be used and who it should benefit when they are no longer around to guide it. This could include providing for family, donating to charities, supporting community projects, or even funding a trust for a beloved pet.
It's crucial to remind clients that estate plans are not only for the wealthy. Even those with modest assets can benefit from this planning to ensure their loved ones are not left dealing with legal complications and potential disputes during an already difficult time.
An excellent way to broach this subject is to encourage clients to think about their legacy and what they would like to leave behind. Estate planning is a tangible way to make these wishes a reality.
Conclusion
While discussing death and estate planning can be uncomfortable, it's crucial to convey the potential consequences of dying intestate to your clients. By doing so, you can help them understand the importance of estate planning in ensuring their wealth is distributed according to their desires and not the state's default rules. You can also help them provide for a smoother transition for their loved ones and a legacy that truly reflects their wishes.
Remember, your role extends beyond guiding clients' investments. You are also there to help them plan for all of life's eventualities. Ensuring your clients understand the risks of dying without a proper estate plan is an invaluable part of that service.
GoGo Estate, as the leading online estate planning tool, offers your clients affordable and comprehensive estate planning. Refer your clients to GoGo Estate to help them secure their legacy and avoid the pitfalls of dying without an estate plan.