Why Every Missouri Family Needs an Estate Plan

Most people think estate planning is for the wealthy — the kind of thing you worry about when you have multiple properties, investment portfolios, and complicated family structures. That assumption is wrong, and it costs Missouri families dearly every year.

Estate planning is not primarily about distributing money. It is about making decisions now so that the people you love are not forced to make those decisions during the worst moments of their lives — when you are incapacitated, when you have just died, when grief makes clear thinking nearly impossible.

What Happens Without an Estate Plan

When a Missouri resident dies without a will, state law decides who inherits their property. Missouri's intestate succession statutes apply a rigid formula that may not match your wishes at all.

If you are married with children, your spouse receives the first $20,000 of your estate plus half the remainder. Your children split the other half. If you assumed your spouse would receive everything, you assumed wrong.

If you are unmarried with children, your children inherit everything in equal shares. If one of your children is a minor, a court-appointed guardian manages their inheritance — and that guardian may not be the person you would have chosen.

If you are unmarried without children, your estate passes to your parents. If your parents are deceased, it goes to your siblings. If you have no living parents or siblings, the estate passes to increasingly distant relatives according to a statutory priority list.

If no relatives can be found, your estate escheats to the State of Missouri. Everything you worked for goes to the state treasury.

Beyond the distribution question, dying without an estate plan means:

• A court appoints someone to manage your estate (who may not be your first choice)
• Your minor children's guardian is chosen by a judge, not by you
• The probate process takes longer and costs more
• Family disputes become more likely when there is no written expression of your wishes

The Five Essential Documents

A complete estate plan for most Missouri families consists of five documents. None of them is complicated, and all of them can be prepared in a single meeting with an attorney.

1. Last Will and Testament

Your will names the person who will manage your estate (your personal representative), directs how your property should be distributed, and — critically for parents — names the guardian you want to raise your minor children.

Without a will, a judge makes these decisions based on statutory priorities and the judge's assessment of the best interests of the children. The judge does their best, but they are making decisions about your family with limited information about your values, relationships, and preferences.

2. Revocable Living Trust

A revocable living trust allows you to transfer assets into a trust during your lifetime. You maintain full control as trustee, and you can modify or revoke the trust at any time. When you die, the trust assets pass to your beneficiaries without going through probate.

The probate avoidance benefit is significant. Missouri probate can take six months to over a year and involves court supervision, attorney fees, and public filings. Assets in a living trust transfer privately and often much faster.

A trust is particularly valuable if you own real estate in multiple states, have a blended family with children from prior relationships, or want to impose conditions on inheritance (such as requiring a child to reach a certain age before receiving their full share).

3. Durable Power of Attorney

A durable power of attorney authorizes someone you trust to manage your financial affairs if you become incapacitated. Without it, your family must petition the court for a conservatorship — a public, expensive, and time-consuming process.

With a durable power of attorney, your designated agent can pay your bills, manage your investments, file your taxes, and handle your business affairs without court involvement. The word "durable" means the authority continues even if you become incapacitated — which is precisely when you need it most.

4. Healthcare Power of Attorney

A healthcare power of attorney — sometimes called a healthcare proxy — designates someone to make medical decisions for you if you cannot make them yourself. This person consults with your doctors, reviews treatment options, and makes decisions consistent with your wishes.

Without this document, Missouri law provides a default hierarchy of decision-makers: spouse, then adult children, then parents, then siblings. But if family members disagree about your care, the result can be conflict, delay, and potentially court intervention at the worst possible time.

5. Living Will (Advance Directive)

A living will states your wishes regarding end-of-life medical treatment. Do you want to be kept on life support if you are in a persistent vegetative state? Do you want aggressive treatment if you have a terminal condition with no reasonable hope of recovery?

These are deeply personal decisions. Making them in advance — when you are healthy, clear-headed, and not under the emotional pressure of a medical crisis — spares your family the burden of guessing what you would have wanted.

Estate Planning for Parents

If you have minor children, estate planning is not optional — it is urgent. Two provisions deserve special attention:

Guardian designation. Your will names the person who will raise your children if both parents die. Without this designation, a judge decides. The judge may choose a family member you would not have selected, or there may be a contested custody proceeding among relatives.

Choose a guardian who shares your values, has the capacity to raise children, and is willing to accept the responsibility. Name an alternate in case your first choice is unable to serve. Discuss your decision with the chosen guardian before finalizing your will.

Minor's trust. Leaving assets directly to a minor child creates complications. A minor cannot legally manage property, so the court appoints a conservator — with ongoing court oversight and expense. A trust for your children allows a trustee you select to manage the assets, distribute funds for the children's needs, and transfer the remaining assets to the children at an age you specify.

Common Estate Planning Mistakes

Assuming joint ownership solves everything. Joint ownership with right of survivorship avoids probate for that specific asset, but it creates other problems: exposure to the co-owner's creditors, gift tax implications, loss of control over the asset, and potential disputes if the co-owner is not your sole beneficiary.

Forgetting to update beneficiary designations. Life insurance, retirement accounts, and payable-on-death bank accounts pass to the named beneficiary regardless of what your will says. If your ex-spouse is still listed as the beneficiary on your life insurance policy, they receive the proceeds — not your current spouse or children.

Creating a will but never funding the trust. A trust only avoids probate for assets that have been transferred into it. Creating a trust and then failing to retitle your accounts, real estate, and other assets into the trust defeats the purpose.

Using generic online forms. Missouri has specific requirements for will execution — the document must be signed by the testator in the presence of two witnesses who also sign. Failure to meet these requirements can invalidate the will entirely.

Putting it off. The most common estate planning mistake is delay. Every day without an estate plan is a day when an accident, illness, or unexpected death could leave your family without direction.

FAQ

How much does estate planning cost in Missouri?

Basic estate planning — a will, powers of attorney, and advance directive — typically costs between $500 and $1,500. Adding a revocable living trust increases the cost to $1,500 to $3,000 depending on complexity. These are one-time costs that protect your family for years.

How often should I update my estate plan?

Review your estate plan every three to five years and after any major life event: marriage, divorce, birth of a child, death of a beneficiary, significant change in assets, or relocation to a different state. Missouri law may differ from the state where your documents were originally prepared.

Does Missouri have an estate tax?

Missouri does not impose a state estate tax. However, the federal estate tax applies to estates exceeding the federal exemption amount, which is currently over $13 million per individual. For most Missouri families, estate tax is not a concern, but income tax planning for inherited assets can still be valuable.

Can I write my own will in Missouri?

Missouri does not recognize holographic (handwritten, unwitnessed) wills. Your will must be in writing, signed by you, and witnessed by two competent individuals who are present when you sign. Failing to meet these requirements can result in the will being declared invalid.

What is probate, and can I avoid it?

Probate is the court-supervised process of validating a will, paying debts, and distributing assets. In Missouri, probate typically takes six months to a year. You can minimize or avoid probate by using a revocable living trust, beneficiary designations, and joint ownership — though each strategy has its own considerations.

Your family deserves a plan. Call OTT Law at (314) 794-6900 for a free estate planning consultation.

This article is for informational purposes only and does not constitute legal advice. Every case is different. Contact OTT Law at (314) 794-6900 for a free consultation specific to your situation.