Death can be difficult to discuss, but planning for what happens afterward can prevent important financial and legal decisions from being left entirely to state law. An estate plan can provide instructions for how property should be distributed, identify the people who should handle certain responsibilities, and address other decisions that may affect family members after a death.
Without an estate plan, Tennessee law may determine how probate property passes, and family members may face additional legal and financial questions during the estate-administration process. In this article, we’ll look at five problems that can arise when someone dies without an estate plan and how working with a Tennessee estate planning lawyer can help you evaluate the planning options available.
1. Probate Nightmares
When a person dies, some property may need to pass through probate. Probate is the legal process used to administer an estate, address valid debts and expenses, and distribute probate property according to a valid will or, when there is no effective will, Tennessee’s intestate succession laws.
Probate can involve court filings, administration costs, creditor claims, and delays before certain assets are distributed. A will can provide instructions for distributing probate property, while other estate-planning tools may help some assets pass outside probate. For example, property that has been properly transferred to a living trust may be administered according to the terms of the trust rather than through the probate estate.
2. Unintended Beneficiary Designations
Remarriage can create additional estate-planning concerns when either spouse has children from a previous relationship. If property is left outright to a surviving spouse, that spouse generally controls what happens to the property afterward. They may spend it, give it away, or eventually leave the remaining property to their own children or other beneficiaries. As a result, children from the deceased spouse’s prior relationship may ultimately receive less than the deceased spouse intended.
A carefully structured estate plan can help address these concerns by specifying how property should pass among a surviving spouse, children, stepchildren, and other beneficiaries. Depending on the circumstances, trusts and other planning tools may also allow a surviving spouse to benefit from certain assets during their lifetime while preserving remaining property for children or other beneficiaries.
3. Financial Stress on Your Heirs
Debts and other financial obligations can reduce the amount of property ultimately available to beneficiaries. During the administration of a Tennessee estate, valid creditor claims, administration expenses, funeral expenses, and any applicable taxes may need to be paid before the remaining estate property is distributed.
A carefully structured estate plan can help address these obligations in advance and may reduce unnecessary costs or complications. Depending on the circumstances, planning for asset ownership, beneficiary designations, trusts, and available funds to cover estate expenses can help preserve more of the estate for the people you intend to benefit.
4. Guardianship and Custody Issues
If you have minor children, your estate plan can identify the person you would prefer to serve as their guardian if no parent is available to care for them. In Tennessee, a surviving parent generally has priority, but a person designated by the parents in a will or other written document receives important consideration if a guardian must be appointed.
The court ultimately determines who should serve based on the child’s best interests, so naming a guardian does not guarantee that person will be appointed. However, clearly documenting your preference can give the court valuable guidance and may reduce uncertainty or disagreements among family members about who should care for your children.
5. Healthcare Decision Confusion
An important part of estate planning is documenting your healthcare wishes in case you become unable to make or communicate medical decisions for yourself. In Tennessee, an Advance Directive for Health Care can provide treatment instructions and name a healthcare agent to make decisions on your behalf when you lack capacity.
Without clear instructions, family members may be uncertain about who should make healthcare decisions or what treatment you would have wanted. Preparing an advance directive can provide clearer guidance to your healthcare agent, family members, and medical providers if you later become incapacitated.
How Do You Know When You Have Found the Right Estate Planning Law Firm?
Choosing the right estate planning attorney can affect how clearly your goals are understood and how well your estate-planning documents address your circumstances. Here are several factors to consider when evaluating an estate planning lawyer:
Estate Planning Experience: Look for an attorney with meaningful experience handling wills, trusts, powers of attorney, beneficiary planning, and other estate-planning matters relevant to your circumstances. The attorney should also stay current on changes in Tennessee and federal law that may affect estate plans.
Clear Communication: An estate planning attorney should be able to explain legal concepts, available options, and potential consequences in language you can understand. They should also take the time to listen to your goals, family circumstances, and concerns before recommending a particular planning strategy.
Accessibility: Look for an attorney who communicates clearly, responds to reasonable questions, and keeps you informed about important steps in the estate-planning process.
Customized Advice: Estate-planning recommendations should reflect your assets, family circumstances, beneficiaries, and goals rather than relying on the same approach for every client.
Reputation and Client Feedback: Publicly available reviews and other information about an attorney’s experience and reputation can help you evaluate whether the attorney may be a good fit for your needs.
Professionalism and Trust: Estate planning often involves sensitive financial and family information. Look for an attorney who communicates candidly, handles confidential information appropriately, and approaches the representation professionally.
Knowledge of Tennessee Law: Estate-planning laws vary by state. An attorney familiar with Tennessee law can help address issues involving wills, trusts, probate, beneficiary planning, guardianship, and surviving-spouse rights.
Appropriate Resources: Consider whether the attorney or firm has the staff and systems necessary to prepare documents, communicate with clients, and address related estate-planning matters when needed.
Compatibility: Estate planning may involve an ongoing professional relationship as your family, finances, and goals change. Choose an attorney you feel comfortable working with and can communicate with openly.
Let Inman, Stadler & Hill Help You Develop Your Estate Plan
Estate planning can be useful for adults at many stages of life, not only those with substantial assets. A carefully prepared plan can help document your wishes, identify the people you want to make certain decisions, and coordinate how property should pass after your death.
At Inman, Stadler & Hill, our attorneys can review your circumstances, explain estate-planning options available under Tennessee law, and prepare documents designed to reflect your goals and family situation.
