Don’t Wait: The Silent Risks of Not Having an Estate Plan

By Rimma Portnova

Estate planning is often misunderstood as a luxury reserved for the ultra-wealthy. In reality, if you own a home, maintain a bank account, operate a business, have dependents or simply wish to ease the burden on your loved ones, then you already have an estate – and you need a plan. Waiting to address it isn’t harmless. It’s a silent risk, growing larger every day.

A Lifetime of Work – Undone in a Moment

Imagine this: You’ve built a life with maybe not a fortune, but enough to give your family a sense of security. Then suddenly, the unexpected happens. No will. No power of attorney. No health care directive. No clear instructions. In the middle of grieving, your loved ones now face a legal maze, frozen accounts, court-appointed decisions and rising costs that quietly chip away at what you worked so hard to create.

This isn’t an unfortunate anomaly – it’s a far more common outcome than most realize. And not all accidents end in death. Incapacity can be just as devastating, especially when no one has the legal authority to act on your behalf. Medical decisions, finances, even your care may be subject to court supervision. Your family, heartbroken, becomes spectators in a system that doesn’t know you.

This is particularly critical for high-net-worth individuals (HNWIs), who may have business interests, multiple real estate holdings, philanthropic endeavors or blended family structures. The more complex the estate, the more chaos ensues when there is no plan in place.

The Legal System Is Not Built for the Unprepared

When you don’t have an estate plan, your legacy is decided by default, not design. That means court fees, delays and decisions made by strangers. It also means more stress and confusion for the people you love most, exactly when they’re least equipped to handle it.

Probate can be a long, expensive process that exposes personal financial information to public records and invites legal challenges from family members or outside parties. For HNWIs, probate doesn’t just cause emotional distress, it can also result in serious financial losses, estate tax exposure and missed opportunities to strategically transfer wealth.

In addition, depending on your state, intestacy laws (which govern how assets are distributed if someone dies without a will) may not reflect your values or wishes. A surviving spouse may receive only a portion of the estate, while the remainder is split among children. In blended or non-traditional families, this can create a web of confusion and resentment. Guardianship for minor children may also be determined by the court.

The Importance of Life Insurance and Dynasty Trusts

There is never enough time. Putting off estate planning isn’t just a gamble due to accidents or unforeseen life events. Changes in government policy, inflation, higher taxes, or increased legal fees can dramatically affect outcomes, especially for HNWIs.

The clock is always ticking on organizing key estate assets such as life and long-term care insurance. Whole life policies offer guaranteed cash value accumulation and stable long-term growth. Family members can borrow against the policy’s cash value rather than being forced to sell investments. It’s critical to secure term insurance while an individual is young and healthy, as premiums become cost-prohibitive with age.

Wealth transfer strategies like dynasty trusts preserve family wealth across generations by shielding assets from estate taxes, creditors and divorce. When life insurance is placed within a trust, HNWIs can exclude the death benefit from their taxable estate, helping to maximize what is passed on.

Consider the divergent paths of two famous families: Cornelius Vanderbilt passed his fortune directly to heirs and within three generations, most of it was gone. John D. Rockefeller, by contrast, implemented structured family governance and trust systems to grow and protect wealth. Rather than relying on direct inheritance, his plan included trusts and life insurance tools that continue supporting his legacy a century later.

Philanthropy and Purpose: Beyond Wealth Preservation

For many high-net-worth families, estate planning isn’t solely about wealth preservation, it’s about legacy and impact. A well-structured estate plan enables individuals to pass on their values, not just their valuables.

Tools like donor-advised funds (DAFs), charitable remainder trusts (CRTs) and private foundations support meaningful causes while reducing taxable income and establishing a charitable legacy. These tools also offer an opportunity to involve family members in giving decisions, fostering purpose and cohesion across generations.

Without a clear estate plan that incorporates charitable goals, these opportunities may be missed or left to heirs who may not share the same philanthropic vision.

Planning for Business Succession

For business owners, succession planning is one of the most overlooked but critical components of estate planning. Many HNWIs have built wealth through private enterprises, yet most do not have a documented transition plan in place.

Who will lead the company if something happens to you? Will your children inherit it or would they prefer to sell it? Is there a buy-sell agreement with co-owners? Are valuation and key-person insurance accounted for? Estate planning answers these questions before they become emergencies. A sudden leadership vacuum or forced sale can devalue a business overnight, undoing decades of hard work and success.

Practical Next Steps for Estate Planning

When it comes to estate planning, timing often matters more than the specific tools used. Whatever measures you take, the time is now. Waiting risks financial waste and loss of control over key decisions.

Consider the following steps:

Review all existing plans and ensure proper beneficiaries are established and notified.

Create a will, sign and notarize it, and update it regularly

Draft medical directives to avoid family conflict in emergencies

Establish and fund revocable or irrevocable trusts

Review state-specific tax rules and exemption thresholds

Work with estate attorneys and financial advisers to build a comprehensive, strategic plan

Legacy Requires Action

We work our entire lives to build a better future for our families. Leaving that future to chance – or to probate court – puts it all at risk. Especially for HNWIs, the drop-off from generational wealth to financial reset can happen faster than many expect.

When it comes to your estate, you only get one shot to get it right and there’s no time to waste.

About the author: Rimma Portnova

Rimma Portnova is the Global CEO of ARI Financial where she is responsible for cultivating and maintaining key external relationships with bankers, investment advisors, legal counsels, insurance carriers and corporate service providers. Her leadership is instrumental in promoting a culture focused on efficiency, results, and customer-oriented services.