With the economy being what it is many people are choosing to put off estate planning as a non-essential item until things start to look up again, but we’re here to tell you why that is a bad idea. Below are 5 reasons why you may want to rethink putting your estate planning on the back burner:

1. The Plan The State Has Provided For You. If you don’t create your own estate plan the state has provided one for you. In this situation your property goes through the probate process, which is not only lengthy and expensive, but in the end the courts get to decide to whom your assets will go and how much they’ll get.

2. The Foster Care System. Neglecting to nominate guardians for your minor children means that the state is responsible for them should something happen to you. Without any direction on your part, your children could end up in the care of your nearest living relative, being put in the care of whoever happens to step forward, or—worst case scenario—in the foster care system.

3. Estate Taxes And Administrative Expenses. Without proper planning much of your estate could end up going to the government or being drained by unnecessary administrative expenses rather than going to your heirs in a safe and efficient manner.

4. Your Ex-Spouse. If you are separated or divorced your ex-spouse could still be listed as the beneficiary on any of your retirement accounts or life-insurance policies obtained while you were still married.

5. Your Family’s Financial Privacy. Once a will has been submitted to the probate courts it becomes a public document. Only a trust will keep your financial affairs private and away from the prying eyes of possible predators.

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