It’s a common misconception that estate planning is only appropriate for the elderly or people who have amassed great wealth. Even without significant inherited or accumulated wealth, most people have an estate made up of what they own — a car, home or other real estate, checking and savings accounts, investments, life insurance, furniture, and personal possessions.
No matter how large or modest the estate, most people want to control how those things are given to the people or organizations they care about. To make those wishes clear, an estate plan provides instructions identifying who should receive property, what they should receive, and when they should receive it.
A plan can also be structured with the goal of limiting unnecessary taxes, legal fees, and court costs.
What an Estate Plan Can Address
- Instructions identifying whom you want to receive property, what you want them to receive, and when they are to receive it
- Last Will and Testament provisions
- Guardianship directions for minor children
- Advanced directives identifying health-care proxies and medical directives, including life-support decisions
- Planning intended to reduce unnecessary taxes, legal fees, and court costs
All adults who are mentally capable should have some form of an estate plan. It may be as simple as an advanced directive or a last will and testament. An estate planning attorney can assess the client’s needs, create the documents that form the foundation of the plan, and update those documents as necessary.
Planning for Children and Incapacity
There are significant issues that only a will can clarify. One of the biggest is who will take care of the people you love, and how. You may have told a trusted friend that person should be the guardian of your children if you and your spouse die, but unless that wish is spelled out in a will, there is no guarantee it will happen.
If both parents die, it will be up to the state to decide. That raises difficult questions about which relatives should raise the children and how the children should be provided for. If you have minor children, making those wishes clear is especially important.
Estate Planning Is an Ongoing Process
Estate planning is an ongoing process and should be reviewed and updated as the law, family circumstances, and financial situations change over time.
Tennessee Intestate Succession
If a person dies without making provisions for loved ones, Tennessee’s intestate-succession rules determine how the estate passes. The production Estate Planning page includes selected statutory excerpts addressing surviving spouses, heirs, representation, and escheat.
T.C.A. § 31-2-104. Surviving spouse; heirs.
(a) The intestate share of the surviving spouse is:
- If there is no surviving issue of the decedent, the entire intestate estate.
- If there are surviving issue of the decedent, either one-third (1/3) or a child’s share of the entire intestate estate, whichever is greater.
(b) The part of the intestate estate not passing to the surviving spouse under subsection (a), or the entire intestate estate if there is no surviving spouse, passes as follows:
- To the issue of the decedent; if they are all of the same degree of kinship to the decedent they take equally, but if of unequal degree, then those of more remote degree take by representation.
- If there is no surviving issue, to the decedent’s parent or parents equally.
- If there is no surviving issue or parent, to the brothers and sisters and the issue of each deceased brother and sister by representation; if there is no surviving brother or sister, the issue of brothers and sisters take by representation.
- If there is no surviving issue, parent, or issue of a parent, but the decedent is survived by one or more grandparents or issue of grandparents, half of the estate passes to the paternal grandparents if both survive, or to the surviving paternal grandparent or to the issue of the paternal grandparents if both are deceased, the issue taking equally if they are all of the same degree of kinship to the decedent, but if of unequal degree those of more remote degree take by representation; and the other half passes to the maternal relatives in the same manner; but if there is no surviving grandparent or issue of grandparent on either the paternal or maternal side, the entire estate passes to the relatives on the other side in the same manner as the half.
31-2-106. Representation.
If representation is called for by this title, such representation shall be per stirpes.
Per stirpes (“by branch”) is a legal term describing distribution by family branch, so that each branch of a decedent’s family receives the share allocated to that branch.
31-2-110. Escheat.
If there is no taker under the provisions of this chapter, the intestate estate shall escheat to the state of Tennessee under the provisions of chapter 6 of this title.
For a full listing of Tennessee law regarding intestate succession, review Title 31, Descent and Distribution, Chapter 2, Intestate Succession.
Frequently Asked Questions
If a person dies without an effective estate plan, Tennessee intestate-succession law can determine how property passes. The result may differ from what the person would have chosen, which is one reason the existing page encourages adults to put their wishes in writing. Without an effective estate plan, Tennessee default succession rules may determine who receives certain property, and court procedures may become necessary even when the family believes the deceased person’s wishes were clear. An attorney can use those details to explain the available options and help the client make a more informed decision about how to proceed.
Estate planning is not limited to older adults or people with significant wealth. Anyone who owns property, has children, wants to choose beneficiaries, or wants trusted people to make financial or health-care decisions may benefit from a plan. Estate planning can be valuable for adults at many stages of life, particularly people who own property, have children, support family members, operate a business, or want trusted individuals to handle financial and health-care decisions if they cannot act for themselves. The strongest approach is usually built from the specific facts and documents rather than assumptions about how a typical case should work.
Depending on the client’s needs, an estate plan may include a Last Will and Testament, powers of attorney, health-care directives, guardianship provisions for minor children, and trust planning when appropriate. A coordinated Tennessee estate plan may include a will, financial powers of attorney, health-care directives, guardianship provisions, beneficiary planning, and trusts or other tools when they fit the client’s goals and assets. Careful preparation can also make later negotiations, filings, benefit reviews, or court proceedings more focused and better supported.
A will can express the parents’ choice of guardian and provide directions for how assets should be managed for children. Additional planning can address who will handle financial and health-care decisions if a parent becomes incapacitated. Parents of minor children can use estate-planning documents to express guardianship preferences and create a structure for managing inherited assets, while incapacity planning can identify trusted people to make decisions during the parent’s lifetime. Because legal outcomes depend on individual facts and applicable law, a case-specific review is important before major decisions are made.
Estate plans should be reviewed as families, finances, property, health, and the law change. Marriage, divorce, births, deaths, major purchases, business changes, and other significant life events can create reasons for an update. Marriage, divorce, births, deaths, major purchases, changes in wealth, business developments, relocation, and changes in personal relationships are all good reasons to review whether an existing Knoxville estate plan still reflects the client’s wishes. A consultation can help separate general information from the facts, risks, deadlines, and goals that matter most in the individual matter.
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