Do You Need an Estate Plan If You Don’t Own Property?
Many people mistakenly believe that estate planning is only for the wealthy or those with extensive property. However, this couldn't be further from the truth. An estate plan is a critical tool for everyone, regardless of their financial situation. It makes sure your wishes are honored and your loved ones are protected.
At Mockaitis Law Group LLC, we often meet clients who assume estate planning doesn’t apply to them simply because they don’t own real estate. If you don’t currently have an estate plan, we can help you create one that fits your unique circumstances, protects your future, and gives you peace of mind. We take great pride in serving the needs of clients throughout Chicago’s west suburbs.
Why Having an Estate Plan Matters Even Without Property
It’s easy to equate estate planning with large estates or multiple properties. However, property ownership is only one piece of the puzzle. An estate plan is about far more than dividing assets—it’s about making decisions ahead of time so that others don’t have to make them for you.
Even if you rent your home, don’t have significant savings, or don’t own real estate, there are still personal, financial, and healthcare matters that need direction. Without an estate plan, state laws determine what happens to your belongings, who handles your affairs, and who makes medical decisions for you if you’re unable to.
The Broader Purpose of an Estate Plan
An estate plan provides structure and clarity for your future wishes. It answers critical questions that can profoundly affect you and your loved ones. These include:
Who’ll make medical decisions: A healthcare power of attorney lets you name someone you trust to make healthcare choices if you become incapacitated.
Who’ll handle your finances: A financial power of attorney gives someone authority to manage your bank accounts, pay bills, or handle taxes if you can’t.
What happens to your personal belongings: From family heirlooms to digital assets, a will makes sure that your possessions go where you want them to.
Who cares for your dependents: If you have children or dependents, you can name a guardian to take care of them in your absence.
What kind of care you want at the end of life: Living wills allow you to express preferences for life support, pain management, or other end-of-life medical care.
While property often gets the most attention, these other components are just as important—and they’re relevant to everyone, regardless of whether they own real estate.
Planning for Health and Medical Decisions
Health decisions can become complicated quickly, especially when family members have different opinions about what’s best. That’s why an estate plan should include documents that make your healthcare preferences clear.
A living will allows you to outline your wishes about life-sustaining treatment. You can specify whether you want to receive resuscitation, artificial feeding, or life support in certain situations.
A healthcare power of attorney complements this by giving someone you trust the authority to speak on your behalf. That person—often called your healthcare agent—can make medical decisions consistent with your wishes if you’re unable to communicate them yourself.
These documents prevent uncertainty and conflict among loved ones. They also relieve your family of the emotional burden of trying to guess what you would have wanted.
If you think estate planning is only for distributing property, consider the importance of maintaining control over your medical care. That’s a critical part of your overall plan.
Managing Finances Without Owning Property
Even if you don’t own a home or significant assets, financial planning remains an essential component of an estate plan. Everyone has some form of financial footprint, including bank accounts, retirement savings, insurance policies, and even digital payment apps.
A durable power of attorney for finances allows you to name someone you trust to manage your money if you become incapacitated. This could include:
Paying bills: Keeping up with rent, utilities, or medical expenses.
Managing accounts: Handling your checking or savings accounts.
Filing taxes: Making sure your taxes are submitted accurately and on time.
Accessing benefits: Managing Social Security, disability, or other benefits you receive.
Even if your finances are modest, not having someone legally designated can make things unnecessarily complicated. Without that authority, your loved ones may need to go through court proceedings to manage your affairs. An estate plan prevents those obstacles and keeps your financial matters running smoothly.
Digital Assets and Online Accounts
As we move more of our lives online, it’s easy to overlook what happens to our digital presence after we’re gone. From photos stored in the cloud to social media profiles and online subscriptions, these assets hold both sentimental and financial value.
Including digital assets in your estate plan confirms that your family can access or close accounts according to your wishes. Consider adding:
A list of digital accounts: Include email, social media, online banking, and shopping accounts.
Instructions for management: Clarify whether accounts should be deleted, memorialized, or transferred.
Password access: Securely record login information so your executor can act as needed.
Without clear instructions, families often struggle to access online accounts due to privacy laws and password restrictions. Planning ahead provides them with the authority they need to manage your digital life responsibly.
Personal Belongings and Sentimental Items
You don’t need to own a house or significant investments for your possessions to matter. Items like jewelry, family photos, collections, or personal keepsakes often carry more emotional weight than monetary value.
A will allows you to specify who receives these items. You can also include a personal property memorandum—a separate document that lists your belongings and designates who you want to receive them. This can be easily updated over time without requiring a complete rewrite of your entire will.
Without these directions, loved ones may argue or feel hurt over sentimental items. An estate plan helps avoid misunderstandings and protects family relationships during an already difficult time.
Naming Guardians for Children or Dependents
If you have minor children or care for dependents with disabilities, an estate plan is essential. Even without owning property, you have an important responsibility to outline who’ll care for your loved ones if you’re no longer able to.
Naming a guardian in your will gives you control over who steps into that role. Without this, the court decides who’ll care for your children or dependents—possibly choosing someone you wouldn’t have selected.
In addition to naming a guardian, it’s wise to create a letter of intent. This document provides details about your dependents’ routines, preferences, medical needs, and other important information. It serves as a guide for the person who’ll take over caregiving responsibilities. This kind of planning is a vital part of protecting your family’s future, regardless of how much property you own.
How Estate Planning Protects Loved Ones
The heart of any estate plan is protection—both for you and the people you care about. When decisions are made in advance, it removes guesswork and conflict later. That protection extends to many areas:
Avoiding legal delays: Without a will or power of attorney, families often face time-consuming court procedures to gain control over finances or medical care.
Reducing conflict: Clear instructions prevent disputes among relatives over possessions or responsibilities.
Providing peace of mind: Loved ones know they’re carrying out your wishes rather than making difficult choices on their own.
Minimizing costs: Probate and legal fees can quickly add up. Having a solid plan may streamline the process and reduce expenses.
What Happens If You Don’t Have an Estate Plan
When someone passes away without an estate plan, state law determines what happens next. This process, known as intestacy, ffollows a specific order for distributing assets, regardless of personal relationships or preferences.
If you’re unmarried, for example, your belongings might go to relatives you haven’t spoken to in years. If you have a partner but aren’t legally married, they might receive nothing.
For those without property, the absence of a plan can still create significant problems. Loved ones might struggle to pay final expenses, access your accounts, or make healthcare decisions if you’re incapacitated.
An estate plan helps prevent these complications and provides a roadmap for handling both your life and legacy the way you want.
Reach Out to a Lawyer
If you don’t currently have an estate plan because you think you don’t need one, now’s the time to reconsider. Our firm serves clients throughout Chicago’s West Suburbs, including Kendal County, Kane County, DuPage County, Grundy County, and DeKalb County. Contact Mockaitis Law Group LLC today to discuss your options with an experienced estate planning attorney and start creating a plan that’s right for you.