The Real Cost of Not Having an Estate Plan

When it comes to building wealth, a significant portion can be centered around accumulating and cultivating assets. But as your portfolio of assets grow, so does your risk. This is why estate planning is so critical. We have seen many fail to put the proper safeguards in place to protect their assets, and the future generations they support. Without a comprehensive estate plan, your family could face lengthy court delays, excessive legal fees, and painful disputes that may fracture even the strongest relationships. Here are a few reasons why working with an advisor to build a detailed estate plan is beneficial.

Probate: A Public, Painful, and Preventable Process

Probate is the legal process through which a deceased person’s estate is validated and distributed. In theory, it helps to ensure debts are paid and assets are correctly passed on. In practice, it often becomes a lengthy, costly, and stressful ordeal—especially for families with significant or complex wealth.

Probate proceedings are also public, meaning your financial affairs become part of the court record. From business competitors to opportunistic creditors, anyone can access this information. Additionally, depending on the jurisdiction and the complexity of your estate, probate can take months or even years to resolve. During this time, your loved ones may face restricted access to assets they depend on, such as bank accounts, business interests, or real estate. For families accustomed to a certain financial lifestyle, these delays can create not just frustration, but real hardship.

Legal Fees and Court Costs Can Drain Your Legacy

Probate is not just slow, it is expensive. Court fees, executor fees, and attorney costs can consume 3% to 7%, or more, of your estate’s total value. For a $2 million estate that can be a $140,000 cost, which could have stayed with the family.

Additionally, if there is no clear plan, or if disputes arise, those costs can increase significantly. Contested estates often require litigation, forensic accounting, and multiple legal professionals. That is wealth that could have gone to your children, grandchildren, or charitable causes.

A well-structured estate plan minimizes or even eliminates the need for probate altogether. Trust structures, for example, allow for the direct transfer of assets outside of court, dramatically reducing both time and cost.

The Emotional Toll: Family Disputes and Broken Bonds

The emotional relationship with money and status can drive people, even family members, to act out of character. Without a clear estate plan, even close-knit families can fall into conflict.

Unclear intentions, outdated wills, or no documentation at all often leave room for interpretation and litigation. Siblings may disagree on what is “fair,” children from different marriages may feel excluded, or long-time partners may be left without legal standing. In the absence of guidance, even small disagreements can become legal battles.

In our experience, we have seen families who once shared holidays now speak only through attorneys. These conflicts cost more than money, they can fracture relationships that took decades to build.

Proper planning is more than tax efficiency; it is about clarity. A detailed, thoughtfully communicated estate plan can provide peace of mind to your heirs and help preserve the unity of your family long after you’re gone.

What an Effective Estate Plan Looks Like

An estate plan is more than a simple will. It should include:

• Revocable or irrevocable trusts to transfer assets outside of probate
• Powers of attorney and healthcare directives for incapacity planning
• Business succession plans for privately held companies
• Beneficiary designations aligned with your overall wishes
• Regular updates to reflect changes in assets, family structure, or tax laws

Most importantly, it should be customized. Cookie-cutter documents do not protect complex estates very well. That’s why we work closely with estate planning attorneys and your advisor team to craft plans that align with both your financial goals and your family dynamics.

Peace of Mind Is the True Return on Investment

Estate planning may not offer the excitement of an IPO or the satisfaction of a philanthropic gift, but it is foundational to lasting wealth. It protects not only what you have built, but whom you have built it for.

We encourage you, if you have not done so already, to take the time now and work with us to build and maintain a comprehensive estate plan. It helps to ensure that in your absence, your family will have clear, directive, and protective instructions towards the generational transfer of your wealth.

Unique Wealth, LLC (“Unique Wealth”) is a Registered Investment Advisor (“RIA”) with the U.S. Securities and Exchange Commission (“SEC”). Unique Wealth provides investment advisory and related services to clients. Unique Wealth will notice file and/or register in such jurisdictions as required by the SEC or various state regulators. SEC registration does not constitute an endorsement of the Firm by the Commission nor does it indicate that the Firm has attained a particular level of skill or ability. Unique Wealth renders individualized responses only after complying with regulatory requirements or pursuant to an applicable state exemption or exclusion.