Wednesday, April 23, 2025

The Hidden Costs of Skipping Estate Planning—And How to Avoid Them

For many individuals and families, estate planning feels like a task that can be put off until “someday.” After all, who wants to think about the end of life or unexpected incapacity when you’re focused on living? But the reality is this: avoiding estate planning doesn’t just create uncertainty—it can be financially devastating for the loved ones you leave behind.

At Protection Plus Insurance, we understand how overwhelming the topic of estate planning can be. That’s why we’ve made it our mission to help individuals, families, and federal employees develop clear, affordable strategies that secure their assets and protect their loved ones from unnecessary costs, delays, and disputes.

In this post, we’ll break down the real financial risks of skipping estate planning—and show you how to build a plan that saves money, protects your legacy, and provides peace of mind for the future.

What Is Estate Planning—And Why Does It Matter?

Estate planning is the process of making legal arrangements for how your assets—like property, investments, retirement accounts, and personal belongings—will be handled after your death or if you become incapacitated. It often includes documents such as a will, living trust, power of attorney, and healthcare directives.

Without these tools in place, your estate could face:

• Court intervention (probate)
• Costly legal fees
• Family disputes
• Unnecessary taxes
• Delayed access to funds for loved ones

Let’s explore each of these in detail.

The High Price of Procrastination: 5 Hidden Costs of Skipping Estate Planning

1. Probate Fees and Delays

When someone dies without a will (intestate), their estate must go through probate, a legal process where the court oversees the distribution of assets. Probate can be:

• Expensive – Costs can range from 2% to 7% of the estate’s total value in attorney fees, court costs, and appraisals.
• Time-consuming – Probate can drag on for months or even years, delaying access to funds your family may need immediately.
• Public – All documents become part of the public record, opening your family’s finances to scrutiny.

Avoid it: Establishing a revocable living trust allows assets to transfer privately, without court intervention, saving time and money.

2. Unnecessary Taxes

Federal estate taxes may only affect very large estates (over $13.61 million in 2024), but state-level inheritance taxes or income tax on certain inherited accounts (like traditional IRAs) can still bite.

Common tax-related estate planning oversights include:

• Failing to set up tax-advantaged accounts or gifting strategies
• Not naming beneficiaries for retirement accounts and life insurance
• Leaving large retirement assets to minors or unprotected heirs

Avoid it: Work with a licensed estate planner at Protection Plus to minimize your tax liability through beneficiary designations, charitable contributions, and strategic asset transfers.

3. Family Disputes and Legal Battles

Without a clear, legally binding estate plan, your loved ones may argue over:

• Who should inherit what
• Who should manage the estate
• Who should raise minor children

These disagreements can lead to costly litigation and permanent family rifts—especially if stepfamilies, blended families, or estranged relatives are involved.

Avoid it: A detailed will or trust spells out your wishes clearly. You can also assign a neutral third-party executor or trustee to manage the estate fairly.

4. Medical and Financial Chaos During Incapacity

If you become seriously ill or incapacitated without powers of attorney or healthcare directives in place, no one—not even your spouse—can legally make financial or medical decisions for you. This can lead to:

• Missed bill payments or loss of assets
• Delays in critical healthcare decisions
• Court-appointed guardianship (costly and often not what you would choose)

Avoid it: A durable power of attorney and advance healthcare directive ensure someone you trust can act on your behalf immediately, with legal authority.

5. Disinheriting Loved Ones by Mistake

In the absence of a will or trust, state intestacy laws determine who receives your estate. That means:

• Unmarried partners, stepchildren, or friends you consider family may receive nothing
• Ex-spouses or estranged relatives may be entitled to a share
• Your estate might not reflect your values, legacy, or wishes

Avoid it: With Protection Plus, you can create a comprehensive plan that ensures your assets go exactly where you want them to—with no surprises.

Protection Plus: Affordable Estate Planning Solutions That Put You in Control

At Protection Plus, we don’t believe estate planning should be a luxury only for the ultra-wealthy. We believe in retirement income planning for everyone possible. Our team helps you:

• Protect your family
• Minimize taxes and fees
• Avoid probate
• Preserve your legacy
• Maintain privacy

We offer cost-effective solutions tailored to your unique life circumstances, including wills, trusts, powers of attorney, healthcare directives, and more. Whether you’re a young parent, a federal employee, or a retiree building a legacy, our advisors guide you every step of the way—with clarity and care.

Quick Start Estate Planning Checklist

Ready to take action? Here’s what you’ll need to get started:

✅ Make a list of all your assets and debts
✅ Choose your beneficiaries (including backups)
✅ Decide who will make medical and financial decisions if you can’t
✅ Write down your healthcare wishes
✅ Consider creating a will, trust, power of attorney, and advance directive
✅ Review and update your life insurance and retirement account beneficiaries
✅ Schedule an estate planning consultation with Protection Plus

Closing Thoughts: Don’t Leave Your Legacy to Chance

Estate planning isn’t about you—it’s about the people you love. When you fail to plan, you risk burdening your family with court costs, confusion, and conflict during one of the most emotionally challenging times of their lives.

With Protection Plus, you can build a thoughtful, legally sound estate plan that protects your family’s financial future and honors your values. Let us help you take the guesswork out of legacy planning and give you the peace of mind you deserve.

Request Your Complimentary Estate Planning Review Today

Let’s make your legacy one worth protecting. Contact us at 852-352-6535 or by sending an email to glenn@protectionplusins.com for a free estate planning consultation and start building a secure, lasting future for your loved ones.

Sources

• American Bar Association: Estate Planning Basics
• IRS: Estate Tax Information
• Nolo: How Probate Works