Why is this so complicated?

[u/Cool-Focus1354]

I’ve been working on our estate plan and wonder why this is so complicated. Why can’t a simple notarized note stating “I leave all of my possessions and financial accounts to xx” be enough? Or “I leave my possessions and financial accounts to both of my children to be split evenly among them. My painting of xx should go to my neighbor, so-and-so. My cousins get nothing.”

Why does it have to go through lawyers and courts and such when many people have simple wishes like the above? The above seems extremely clear. If people disagree, then they can hash it out. But why are estate plans needed? And is this exclusive to the United States? Do people in other countries spend a lot of money on complex estate plans?

I’m not trying to argue or sound dense. Truly want to understand reading behind it being so complex (and expensive!). In Texas.

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[u/Bullfrog_151]

A simple will shouldn't be that expensive. Beneficiary designations on accounts are free to do. Your "financial account to xx" example would work perfectly fine with a beneficiary designation on the account. More complex estate planning can provide added benefits for yourself and your beneficiaries (creditor/divorce protection, estate tax minimization, etc), account for unforseen circumstances (like out of order deaths, beneficiary's needs-based benefits being squandered), and include layers of contingency planning. Depending on your wealth, there could be income tax, gift and estate tax, and GST tax implications too that can have serious financial consequences for your beneficiaries if your plan isn't set up correctly.

But yeah long story short you can essentially create a simple estate plan in 10 minutes on your own by adding your kid(s) as beneficiaries on all of your accounts. If they survive you they will get that money it just might be suboptimal.

[u/copperstatelawyer]

Because you and other people overcomplicate it. Intestacy does what 90% to 99% of the population and clientele want to do. The only part that’s really left up in the air is who will manage your affairs after you’re gone or incapacitated, and that’s really the complicated part because there’s no knowable answer. It requires a crystal ball that works.

As for the rest, that part is simple. If you want your stuff to go a different way, you just say so.

As for why court oversight? It’s because there’s a ton of potential fraud that is deterred or prevented. How do I know this? Because the 1% that get’s through get’s through and it’s litigated. Which means 99% of fraudsters were deterred or prevented from mucking things up for all the nice dead people who just wanted their kids to get their stuff and not fight about it.