Most people assume that wills, trusts, and guardianships are only for those with extraordinary wealth or older people. This misconception makes it easy for young adults to feel like they can postpone their estate planning.
This misconception can become dangerous as shown by the public reported estate of Liam Payne.
The former One Direction star who died in 2024 was unmarried and passed without a will which means his estate had to proceed through probate. Reports state that his son at 9 years old was the sole beneficiary with his former partner and attorney as administrators for the estate.
While in the case of this estate, law outside the state of Wisconsin is involved, the lesson can be applied everywhere. When someone dies without an estate plan or will, the law decides how that person’s assets are dispersed.
What Happens When Someone Dies Without a Will?
In the case of someone dying without a will their assets will be considered intestate. Intestate or intestacy is a process where the court will decide where the persons assets go, usually to closest relationships such as a spouse or children.
With intestacy rules determining how assets will pass after a death the results of the assets and where they end up may not match what they would have wished their assets were passed.
Dying without a will can create several problems:
- The person does not choose who receives certain assets
- The person does not choose who manages the estate
- Family members may disagree about what should happen
- Minor children may inherit assets without a customized plan
- Probate may become more complicated or stressful
- Unmarried partners, stepchildren, or other loved ones may not be protected the way the person intended
A will gives you a voice. Without one, the default rules apply.
Why Parents of Minor Children Need a Plan
For parents, estate planning is about much more than dividing property. One of the most important reasons to create a plan is to protect minor children.
Parents should think about who would care for their children if both parents were gone or unable to serve. A will can nominate a guardian for minor children. While a court ultimately makes guardianship decisions based on the child’s best interests, a parent’s written nomination can provide important guidance.
Parents should also consider how inherited money would be managed. Minor children generally cannot manage large inheritances on their own. If no plan exists, a court may need to appoint someone to manage the child’s money, and the child may receive control at an age that feels too young.
Estate planning lets parents make these decisions before a crisis.
Why Parents of Minor Children Need a Plan
For parents, estate planning is about much more than dividing property. One of the most important reasons to create a plan is to protect minor children.
Parents should think about who would care for their children if both parents were gone or unable to serve. A will can nominate a guardian for minor children. While a court ultimately makes guardianship decisions based on the child’s best interests, a parent’s written nomination can provide important guidance.
Parents should also consider how inherited money would be managed. Minor children generally cannot manage large inheritances on their own. If no plan exists, a court may need to appoint someone to manage the child’s money, and the child may receive control at an age that feels too young.
Estate planning lets parents make these decisions before a crisis.
How Trusts Can Protect Inherited Money for Children
A trust can be a powerful tool for parents who want to protect inherited money for children. Through the parents instructions, a trust can manage and hold assets until A trust may allow parents to decide:
- Who manages the money
- When the child receives distributions
- What the money can be used for
- Whether funds should be available for education, health, housing, or support
- Whether the child receives full control at a certain age or in stages
For example, a parent may not want an 18-year-old to receive a large inheritance outright. A trust can create a more thoughtful structure and provide oversight.
Trust planning can also help reduce conflict between relatives by clearly identifying who is responsible for managing assets and how decisions should be made.
Who Manages Money for a Minor Child?
Minor children are unable to legally manage money from an estate, so a supervisor or guardian will be named by the court to manage the money from the estate until the child is legally able to manage the funds themselves.
If the court appoints a guardian for the child, it entails many significant responsibilities such as paying expenses, keeping records, and making decisions in the best interest of the child.
Parents or guardians of a minor child can best prepare for the future by creating an estate plan. With an estate plan, parents get to choose who they most trust with raising a child and even who is best suited to manage the money from their estate for their child. Sometimes these are two different people which they can outline in an estate plan.
For example, a parent might choose one person as guardian for the child and another person as trustee to manage inherited assets. This can create balance and accountability.
Beneficiary Designations Matter Too
While wills and trusts are the most known aspects of estate plans, they are far from the only things that make up an estate plan. By designating beneficiaries, you can control assets from life insurance, payable or transfer on death accounts, and retirement accounts.
If outdated beneficiaries are designated through financial institutions, it is important to update them as outdated or incomplete designations can cause assets to pass in unexpected ways.
It is important to remember to review designated beneficiaries after major life events such as marriage, divorce, birth of a child, business ownership changes, end of relationship, or home purchase.
Having a truly complete estate plan means coordinating wills, trusts, guardianship nominations, beneficiary designations, powers of attorney, and documents for making healthcare decisions.
Estate Planning Is Not Just for Wealthy Families
Celebrity estate stories attract attention because of the size of the assets involved. But the same planning issues affect ordinary families every day.
You do not need to be famous or wealthy to need an estate plan. If you have children, own a home, have retirement accounts, own a business, have life insurance, are unmarried but in a long-term relationship, or have loved ones who depend on you, planning matters.
For young adults and parents, the goal is not just to avoid taxes or distribute wealth. The goal is to create clarity, protect children, choose decision-makers, and reduce stress for family members.
Do Not Wait for a Crisis
Many people put off estate planning because they feel healthy, busy, or too young. Liam Payne’s reported estate situation shows why age is not the deciding factor. Unexpected events can happen at any stage of life.
An estate plan may include:
- A will
- A trust
- Guardian nominations for minor children
- Financial POA
- Healthcare POA
- Beneficiary designation review
- Planning for digital assets, business interests, or special family circumstances
The right plan is built around your family, assets, goals, and concerns.
Talk With a Wisconsin Estate Planning Attorney
By talking with a Wisconsin estate planning attorney you can create an estate plan that is the right fit for your family. With an estate plan you can be the one to decide who receives assets, who manages the assets, and who cares for your children if something unexpected occurs.
If you have children, assets, or loved ones who depend on you, Konstantakis Law Office can help you create a plan before a crisis happens.
This article is for general informational purposes only and is not legal advice. Reading this article does not create an attorney-client relationship.
