II Corinthians 5:8 AMP – [Yes] we have confident and hopeful courage and are pleased to be away from home out of the body and be at home with the Lord.
If you do not plan, then you do still have an Estate Plan, but it may not be what you intended. In this context, not planning, means not having your own Estate Plan. To simplify the concept, this means that you die without a Last Will and Testament of your own. The majority of people fall into this category. This may sound quite shocking, and to me it is.
There are many reasons that people do not plan ranging from procrastination to fear of their own mortality. As Christians, we do not need to fear this, because we know that according to II Corinthians 5:8 AMP that once we die or are “away from home out of the body” we are “at home with the Lord.” Once we think of death as what it is without fear attached to it, then we can have peace and plan for it and for those we love. We can then consider our Estate Plan an act of good stewardship for what we have been entrusted during our lives.
When someone dies without a Last Will and Testament, we use the term Intestate. This is an unusual term and all it means for our purposes is that the decedent did not have a Last Will and Testament. If someone dies without leaving their wishes in a valid format, then Intestacy laws will govern the process of conveying assets of the decedent to beneficiaries. Each state has Intestacy laws so the process and laws will vary.
One of the decisions that a person makes and documents in a Last Will and Testament is who the Agent will be that administers the Estate. We typically call this Agent a Personal Representative, but historically it has been called an Executor. This is the person who represents the Estate and makes sure, among other duties, that ultimately the Estate’s assets are distributed properly to correct beneficiaries. Another decision that a person makes and documents in a Last Will and Testament is who the beneficiaries are and in what percentages they will receive assets. These are just a few of the decisions that are documented in a Last Will and Testament.
When a person dies without a Last Will and Testament, we cannot legally determine what the decedent’s wishes were. Therefore, the state’s Intestacy laws will govern the process. The decisions will then be made by following the Intestacy laws in that particular state. There is no guarantee that the person you wished to be the Agent will actually end up serving in that position. There is no guarantee that the beneficiaries you had intended to have your assets will receive the assets.
When a person does not plan and there is an Intestate Estate, the Estate will also go through the probate process. An oversimplification of what Probate means is that the Probate Court will step in to oversee the process of administering the Estate with a set timeline and processes and procedures to standardize the transfer of Estate assets to beneficiaries. Probate is, in South Carolina, about a year long process at a minimum. The Court will assess fees which the Estate pays depending on the amount and value of assets in the Estate. The Estate will then become part of the public record. The Agent or Personal Representative in many cases will engage a Probate Attorney to represent the Personal Representative during the Probate process. Probate can be a lot of work for the Personal Representative and a source of frustration depending on their level of understanding. For many people with already busy and hectic lives, this extra job is not something that practically makes sense even though they feel a duty to serve in the capacity.
Not planning can also create confusion as well. In my experience, in Intestacy Estates, the Personal Representative will in many cases have a much more difficult task in identifying what assets are actually part of the Estate. For example, what bank accounts did the decedent own and what investments did the decedent own? The Personal Representative will have to act as a detective and find out what obligations are outstanding and if there are any uncollected debts. Did the decedent own life insurance? What are all the account numbers and policy numbers? This is challenging enough to keep track of and organize for one’s own affairs. The reality is that it is extremely challenging and frustrating for a Personal Representative to have to go through a decedent’s home, filing cabinets, closets, and drawers to search for this information, compile it, organize it, and eventually hopefully make sense of it. The likelihood of this task being an overwhelming burden is far more likely in an Intestate Estate because the decedent did not plan ahead.
If you do not plan, then in all actuality, you do have a plan, but if is not your own. The decisions that you have a right to make will be determined by others. The assets that you have worked a lifetime to accumulate will be distributed, but to those beneficiaries that are determined appropriate according to Intestacy laws. There are also sometimes large fees associated with Probate and hiring a Probate Attorney to assist with the process.
There are many more issues relating to Intestacy that are not covered in this article. Just the basics are included here which are extremely important to understand.
As a Christian, you should not be afraid to plan, but consider Estate Planning part of your stewardship. Intestacy (having no plan of your own) can be avoided by even simple planning. Having at least a basic Last Will and Testament will avoid Intestacy laws from governing your Estate’s administration. Procrastination will almost certainly lead to an Intestacy situation. Take time to think about what you want now while you are thinking clearly. Start with what you know and put it in place. You can always change your mind later as your life changes, as your family changes, and as your goals and desires change over time. There is a terrific peace of mind in knowing that you have your wishes documented and executed legally. You will have peace of mind and those you love will also share that peace of mind. BASED ON FAITH.