No Will, No Plan, Big Problems: What Happens If Your Parents Don’t Have an Estate Plan?

No Will, No Plan, Big Problems: What Happens If Your Parents Don’t Have an Estate Plan?

Probate & Estate

Talking to your parents about estate planning might not be high on your to-do list—but it should be. It’s an uncomfortable conversation, sure.

No one likes to think about what happens after they’re gone. But avoiding it now could leave you and your family in a world of stress, confusion, and financial mess down the road.

If your parents don’t have an estate plan, here’s what could happen—and why it’s so important to encourage them to take action now.

The Costly Legal Battle No One Wants

Without a will or estate plan, your parents’ assets don’t just automatically transfer to you or your siblings. Instead, everything gets tied up in probate—a long, expensive, and public legal process where the court decides who gets what.

Probate can take months, sometimes even years, and the legal fees can eat into whatever inheritance your family was expecting. Worse yet, if there are disagreements among family members (which happens more often than you’d think), it can turn into a full-blown legal battle, costing everyone time, money, and peace of mind.

The State Decides Who Gets What

When there’s no estate plan, the government steps in. Laws known as intestacy laws determine how assets are divided, and they don’t always align with what your parents might have wanted.

For example, if your parents are remarried or have stepchildren, things can get complicated fast. Certain loved ones they might have wanted to include—such as grandchildren, a longtime partner, or a close friend—could be left out entirely.

On the flip side, assets could end up in the hands of estranged relatives simply because the law says so.

The Emotional Toll on Family

Grieving a loss is hard enough without adding legal and financial stress to the mix. Families without a clear estate plan often face unnecessary tension, resentment, and arguments. Siblings may disagree about who should get what, or whether a house should be sold.

Estate planning isn’t just about money—it’s about protecting family relationships and ensuring your loved ones can focus on healing, not fighting.

Healthcare and Final Wishes? Also Up in the Air

An estate plan isn’t just about assets; it includes decisions about healthcare and final wishes. Without documents like a healthcare directive or power of attorney, critical medical decisions could be left to doctors—or to family members who may not know what your parents truly wanted.

Similarly, funeral arrangements can become a point of conflict or confusion. Having a plan in place removes the guesswork and ensures that your parents’ wishes are honored.

How to Start the Conversation

So, how do you bring this up without it turning into an awkward or defensive discussion? Here are a few tips:

  • Make it about them. Emphasize that having an estate plan protects their wishes and their legacy, rather than making it about what you or your siblings want.
  • Share a story. If you know someone who went through a tough probate situation, use that as an example of why planning ahead is important.
  • Start with something small. Instead of diving right into wills and trusts, begin by discussing healthcare decisions or who they would want to make choices if they couldn’t.
  • Offer to help. Finding an estate planning attorney, setting up a meeting, or even just gathering paperwork can feel overwhelming. Let them know you’re there to support them. (We offer free consultations. Chuck Bendig is known for his calming nature. He will make them feel at ease. Schedule a consultation today.)

Now Is the Time

An estate plan isn’t just for the wealthy, and it’s not something to “get around to later.” It’s a crucial step in making sure your parents’ wishes are honored, their assets are protected, and your family avoids unnecessary stress and hardship.

Encouraging your parents to put a plan in place now is one of the most loving things you can do for them—and for your entire family. If they’re ready to start, give us a call. We will guide them through the process and ensure everything is handled correctly.

A little planning today can prevent big problems tomorrow—and that’s a conversation worth having.

 

The Rise of Estate Planning Among Millennials: Why It Matters More Than Ever

The Rise of Estate Planning Among Millennials: Why It Matters More Than Ever

All, Probate & Estate, Wills

Recent trends show that younger adults, born between 1981 and 1996, are taking proactive steps to create wills, establish trusts, and prepare for the unexpected.

So, why the shift?

Let’s break it down and explore how planning ahead can offer peace of mind and protect what matters most.

 

Why Millennials Are Now Taking Estate Planning Seriously

After the COVID-19 pandemic, the way young adults think about their future changed. Here are some key reasons why millennials are embracing estate planning:

1. Major Life Events:

  • Buying a first home, getting married, or having children pushes young adults to think about the future.
  • Many realize that without a plan, their assets and loved ones could face unnecessary legal complications.

2. Digital Assets Matter:

  • Millennials have digital footprints—like social media accounts, cryptocurrency, and online businesses—that need managing. A will can outline who will control these digital assets if something unexpected happens.

3. Financial Literacy Is on the Rise:

  • Apps and financial planning tools have made millennials more aware of the importance of protecting wealth and planning for the long term.

4. Affordable and Accessible Legal Services:

  • Many law firms, including mine here in Columbus, Ohio, offer virtual consultations and affordable packages that make estate planning easier than ever.

 

What Happens Without an Estate Plan?

It’s easy to think, “I don’t have much—do I really need a will?” But even if you’re just starting out, failing to plan can have serious consequences:

  • Your state decides who inherits your belongings. If you pass away without a will, the government will distribute your assets according to Ohio’s probate laws—possibly in ways you wouldn’t want.
  • Increased burden on loved ones. Without clear instructions, family members must make difficult decisions during an already emotional time.
  • Guardianship issues. If you have children, a will allows you to designate guardians—otherwise, the court makes that decision for you.

Read our article “How assets are distributed without a will.”

 

How Millennials Benefit from Early Estate Planning

1. Protect Loved Ones

  • Whether you’re single or starting a family, a basic will can ensure that the right people receive your property.

2. Avoid Probate Hassles

  • Setting up a living trust can help your loved ones avoid probate—a time-consuming and costly legal process to validate wills.

3. Control Over Medical Decisions

  • A healthcare power of attorney lets you choose who will make medical decisions on your behalf if you become incapacitated.

4. Peace of Mind

  • Once you have a plan in place, you can live your life knowing your future is secure, freeing you from unnecessary worry.

 

It’s Never Too Early to Start

I meet with clients of all ages—from new parents to young professionals—who want to get ahead of life’s uncertainties. Estate planning is not just for those with vast wealth; it’s for anyone who wants control over their future.

By creating a simple plan now, you’re ensuring that your wishes are honored, and you’re saving your loved ones from unnecessary stress later.

 

Take the First Step with a Free Consultation

If you’re ready to get started or have questions, I’m here to help. Contact my office today to schedule a consultation. We’ll discuss your unique situation and create a plan that fits your needs—whether it’s a simple will, setting up a trust, or planning for your digital assets.

 

How Do Pour-Over Wills Work?

How Do Pour-Over Wills Work?

Probate & Estate, Wills

What is a Pour-Over Will?

A pour-over will is a last will and testament that transfers all of the deceased person’s property, upon death, into a revocable living trust. Simplifying; a pour-over will directs that all property that passes through the will be transferred (poured over) into the trust. The pour-over will serves as a safety net for the trust. The property that is transferred through a pour-over will must still be probated, but the process will be shortened and taxes minimized.

Visualize that a trust is a bucket and the grantor’s (the person who creates the trust) assets are held in that trust bucket. Any assets that are outside of the trust bucket when the grantor dies are subjected to probate. The pour-over will scoops up any assets that are outside of the trust bucket at the time of the grantor’s death, then pours them into the trust bucket.

Is a Pour-Over Will Private?

If someone values their privacy, nothing will be revealed throughout the probate procedure. The probate will just state that the assets were moved to a trust and that the trust’s provisions are still private. Additionally, it keeps the estate plan basic because once the assets are transferred into the trust, they will be subject to the same rules as the assets already held in the trust at the time of the grantor’s death. The grantor’s assets will be governed by a single document. Because of this, any estate plan that makes use of a revocable living trust must include the pour-over will.

Additionally, using a trust-based estate plan, parents can designate guardians for their minor children. If the parents do not name guardians for their minor children in the pour-over will, the court will decide who should be responsible for raising the children in the event that the parents pass away. Naturally, parents would prefer to appoint guardians for their children rather than leave this decision up to the court and run the danger of having their kids raised by someone they would disapprove of.

Pour-Over Wills and Probate

A pour-over will provides benefits over a standard probate procedure even though it does not prevent probate. One of the benefits is that the grantor’s payouts are kept confidential. The only thing that will be revealed throughout the probate procedure is that the assets ought to be transferred to the trust. Since the trust is not a matter of public record, none of its provisions will be made available to the public. The only thing the court needs to ensure is that the assets have been transferred into the trust, not that all of the beneficiaries have received notice or distributions. Thus, the probate is kept brief and minimal.

Here’s an example:

Imagine establishing a trust as part of an estate plan, but the grantor forgets to add an investment account or newly purchased property to the trust’s holdings before passing away.

There is now a significant asset that is not covered by the trust agreement and, in the absence of a pour-over will, would be distributed by the court as if the decedent had passed away intestate, which means that he or she had no estate plan in place.

In this situation, the investment account’s money could end up flowing to people who they never intended to benefit. With a pour-over, the probate judge is instructed to pour the asset into the trust, where it will be managed and dispersed in accordance with the trust document. It will preserve the grantor’s wishes.

If you have any questions about pour-over wills, trusts, probate, or estate planning contact attorney Chuck Bendig for a consultation.

 

Older Couples Selling Their Homes Can Get Major Tax Breaks

Older Couples Selling Their Homes Can Get Major Tax Breaks

Probate & Estate

Susan recently lost her husband, Carl, and is now a widow. They shared ownership of their home with the right of survivorship. In simpler terms, this means that upon the death of Carl (co-owner), the surviving co-owner (Susan) automatically acquires full possession of the highly appreciated home.

Susan is unsure if she should sell it now and move to where her son lives, wait a few years to sell or stay put, in which case the house would eventually pass to her heirs.

She is curious about the tax consequences of her options. She must first understand the tax breaks available to individuals who sell their primary residences.

Exclusions

The law permits “exclusions” that let sellers avoid paying income taxes on the majority of their profits when they sell their primary residences. The profit exclusions are up to $500K for couples who file jointly, and as much as $250K for individuals. All sellers are liable for gains that exceed $500,000 or $250,00, respectively.

Susan chooses to sell her home.

Can she exclude $500K or $250K? The solution depends on the sale date and whether she marries again. Although no longer married, Susan is still eligible for the $500K as long as she sells within two years of Carl’s passing. If she sells after the two-year window, she is only eligible for $250K.

Susan remarries.

If her new spouse, George, lives in her home as his primary residence for at least two years out of the five years prior to the sale date, the exclusion will revert to $500K again.

Typically, the seller must have owned the home for those two years. George doesn’t fit those criteria. His name doesn’t have to appear on the title.

Additionally, according to the IRS, Susan and George don’t have to be wed for the entire two years prior to the sale date, but they do need to be married, even if their wedding takes place just one day before the transaction.

Susan’s taxable gain might be less than she anticipates even if she doesn’t get remarried and doesn’t sell her home within two years of Carl’s death. It is likely that Susan owes taxes on the gain because her long-term capital gain on the sale of her home exceeds the exclusion limit.

Tax rates for long-term capital gains.

The tax rate is usually 15% for most sales, rising to 20% for many high-income sellers. When combined with the Medicare surtax of up to 3.8% on certain types of income, such as earnings from home sales, it can reach a maximum of 23.8% for people in the top income tax bracket of 37%.

  • State income taxes may also be owed.

Tax Cuts and Jobs Act

State and local income and property tax write-offs were limited by the tax cuts and jobs act to $10,000. Another issue is that if Susan is subject to the alternative minimum tax, she loses any write-offs for state income taxes.

Step-up in basis

The government offers condolence gifts for bereaved people who sell inherited homes, securities, and other assets that have increased in value. According to tax terminology, the basis (the starting point for measuring loss or gain) of inherited assets “steps up” from their initial basis (typically the cost at the time of purchase), to their value on the date of death.

When Susan sells her home after Carl dies, she will gain from a step-up in basis. What if she never sells it? Upon Susan’s death, there’s a second step-up in basis that benefits her living heirs.

Only Carl has a partial interest in the first advancement. His adjusted basis is raised to the value of that half-interest at the time of his death, which is normally equal to half the original purchase price and half the cost of any later house modifications. If the couple had resided in a state with common property, the step-up would apply to the entire basis.

When Susan dies, there is a step-up in her adjustment which was previously increased by the step-up for Carl’s half interest, to the value of the entire house when she dies. When the heir sells it, they are liable for capital gains taxes only on the post-inheritance appreciation.

The bottom line

A sale by her heirs greatly reduces or even eliminates those taxes, in comparison to Susan’s sale of the home, whose value has increased significantly. Susan, as well as those in comparable situations, should consult with a tax and estate planning attorney to be sure they’re choosing the right course of action for their long-term future goals.

 

How a Trust for Minors Works

How a Trust for Minors Works

Probate & Estate, Wills

Listen to article - 2:33 seconds

A trust for minors is typically established as a strategy to protect assets and distribute property to children without allowing them immediate access to their inheritance. Typically, minor trusts come with instructions that specify when the funds, estate, or other assets may be released to the minor. Trusts for minors are a great approach to guarantee your children’s long-term security and financial future after your passing.

Establishing a trust for a minor serves a number of purposes:

  • Proactively plans for the distribution of finances.
  • Sets up a timeline as to when the beneficiaries will receive the funds.
  • Defines how the funds should be allocated.
  • Addresses the plan of action should the minor pass away.

You can also choose between a living trust and a will. Each brings unique capabilities. Let’s discuss some of the options you’ll have.

1. Any property left to a minor can be managed by an adult trustee, either of your choosing or court-appointed, who will administer the funds on the minor’s behalf. You can determine the age at which the trust funds become available to the minor for use. For instance, you may feel that a young person lacks the maturity to make good financial decisions. Simply specify the age, and the authority remains with a trustee until the young person reaches the appropriate age.

2. You can set up the trust fund to disperse the money in installments rather than having a flat payment. This can be done as a safeguard to make sure that all of the money isn’t spent right away and it may have tax benefits.

3. You can also restrict the funds to housing, educational, and medical costs. You can choose to include a secondary beneficiary; maybe a grandchild, or to exclude a person’s access to the inheritance completely.

4. Maybe the recipient has a mental or health condition that prohibits the ability to administer the funds on their own, or maybe you’re caring for a minor who has special needs and will require medical care throughout life. In these cases, you can choose to assign a permanent trustee.

As you can see, a Minor Trust offers tremendous flexibility and the structure will impact the lives of the people that you leave behind, and your legacy.

If you need help creating a Minor Trust or want to discuss your options, contact Ohio attorney Chuck Bendig.

How To Divide Possessions Among Heirs

How To Divide Possessions Among Heirs

Probate & Estate, Wills

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The death of a family member brings the family together to share their grief, but then things can get ugly. For example, the daughter of the deceased may announce that her mom promised her the car, but her brother may contest that the car was promised to him. A fight can potentially lead to a split family.

The purpose of a well-crafted estate plan is to give clarity to your wishes so that splitting your assets doesn’t split your family

First, list the most important or valuable items. Your will can get long if you try to list every possession, so create a written statement naming who gets what.

Next, ask your family who values which items the most. From a legal standpoint, it doesn’t have to be witnessed, but if you expect it to be challenged, have it witnessed, dated, and keep that statement with your Will. Make things easy for your executor and your heirs, by taping a note to an item such as furniture or artwork with the name of its new owner.

You may want to direct in your will that some items be sold. It may make sense to sell items of great value and distribute the proceeds. You can, for example, direct a valuable painting to be auctioned off and the proceeds split equally.

Another option is to give everything away while you are alive. The more you distribute now, the less stuff that needs to be dealt with after your death.

When you give gifts, make sure everyone knows about them so that the person receiving the gift is not accused of stealing after your death.

You can make a “deed of gift” for tangible personal property retaining the right to keep things in your home as long as you live. For tax reasons, it may be better not to gift highly appreciated property, like your home or investments, during your life because the new owner will lose the step-up basis.

Get appraisals. Knowing what things are worth may guide your decisions. You can stipulate that the assets be sold and the proceeds divided evenly. If an heir wants the asset, they can choose to buy out the others.

Use a lottery. Some prefer to keep it simple. Your will or trust can authorize your executor or trustee to put names or numbers in a hat and have beneficiaries draw for the order to choose items.

Children support their parents in unequal ways, so disagreements may surface, causing serious tension. If one of your children provides most of your care, make sure your will is extremely clear to avoid strife.

Remember that after your death, you won’t be around to talk your family through any disagreements.

Proper estate planning can remove the stressors, tax burden, and decision-making from your heirs while they are grieving your loss. This should be the time to reconcile and forgive.

We are ready to help you find the best solution for you and your family. Call Chuck Bendig.