A person does not have to be wealthy or elderly to do some serious thinking regarding estate planning. If you own a home or a car or have a checking or savings account, you have an estate. But no matter your net worth, it’s important to have at least a basic estate plan in place. Such a plan ensures that your family is taken care of after your death. Dying without a will or trust (intestate) can be costly to your heirs and can leave you without a say in who inherits your assets. By putting your intentions in writing, you help avoid potential conflicts after you’re gone.
If you don’t create an estate plan, the State may make all decisions for you through the Probate Act in Probate Court. In that case, you lose the power to make those important decisions yourself and leave those decisions to a Probate judge.
During the probate process, the court determines who your “heirs” are, (a person who can inherit your assets under the Probate Act.) If you have minor children, they cannot directly inherit your assets. Instead, the court will assign a guardian of the minor child’s estate (sometimes called a “conservator”) who will “hold” the funds for the minor child until that child turns 18. This means the guardian (and the minor child) cannot use the funds without the court’s approval. Once the child turns 18, all the remaining funds are usually turned over directly to the child.
The Probate court will also appoint a guardian who will care for your child on a daily basis, making the child’s medical, educational and other everyday decisions. If you don’t have a guardian nomination in place, a judge will determine who will act as guardian for your child. The court may not always choose the person who you would want to serve as guardian of your child to raise your child in the same manner as you would.