Why Estate Planning Is a Financial Decision — Not Just a Legal One

Estate planning is often viewed as something to address later in life. But in reality, it’s a financial decision that can affect families long before it becomes urgent.

On a recent episode of Old National Bank’s Real‑Life Finance podcast, Ben Joergens spoke with Laura Nowinski, an attorney specializing in family law and estate planning, about why proactive planning plays an important role in protecting assets, reducing costs, and avoiding unnecessary stress for loved ones.

As family law and estate planning attorney Laura Nowinski shares, the true value of estate planning is often realized by the people left to carry out the plan.

“Often, estate planning isn’t so much for you as it is for the people you love. You can save them a lot of grief. You can save them a lot of money often by doing some thoughtful planning that isn’t always as expensive as some people might think,” emphasized Nowinski.

Planning Ahead Can Help Reduce Financial Risk

According to Nowinski, timing is one of the most important financial considerations in estate planning. Planning before a crisis occurs can significantly reduce both cost and complexity later.

She explains that documents such as powers of attorney must be established while a person still has legal capacity. If someone becomes incapacitated without one in place, families may be forced into a court appointed guardianship process — an outcome that is typically more time consuming, complex, and costly.

From a financial standpoint, Nowinski emphasizes that early planning can help families avoid these higher cost scenarios altogether. Rather than viewing estate planning as optional or something to delay, she frames it as a way to reduce future financial risk and uncertainty — particularly during stressful life events when decisions become more difficult.

Understanding how Assets Transfer is Key

Nowinski also highlights the importance of understanding how assets are transferred after death — and why those distinctions matter financially.

She explains that assets generally fall into two categories:

• Probate assets, such as property owned solely by one individual, and;
• Non‑probate assets, including jointly owned accounts or life insurance policies with designated beneficiaries. Non‑probate assets can often transfer more efficiently, helping families avoid delays and additional legal expenses.

Nowinski points to tools like transfer on death deeds as an example of how thoughtful planning can help assets move directly to beneficiaries while staying out of the probate process. Understanding how assets are titled — and whether beneficiaries are properly designated — can make a meaningful financial difference for families over time.

Divorce, Inheritance, and Long-Term Financial Protection

Estate planning considerations also intersect with major life transitions such as divorce, particularly when it comes to inherited or gifted assets.

Nowinski explains that inheritances received during a marriage should be kept in separate accounts. Once those funds are commingled with joint marital assets, they may be treated differently in the event of a divorce.

“The more that inheritance or that gift is commingled, the less likely you are to recover that as part of your divorce,” noted Nowinski.

She also cautions against emotionally-driven financial decisions during divorce proceedings. While emotional responses are understandable, they can quickly increase legal costs without improving the outcome. Maintaining financial discipline during these transitions, she says, can help protect long-term financial stability.

A Financial Mindset for Life Transitions

Across her work in estate and family law, Nowinski consistently emphasizes the same principle: proactive planning and informed decision making can help reduce financial strain during major life transitions.

When viewed through a financial lens, estate planning is less about predicting the future and more about creating clarity, flexibility, and protection for the people who matter most. For many families, taking steps today — even small ones — can help build greater financial confidence for the future.

Listen to the Real-Life Finance Podcast here, or on Apple Podcast, Spotify, and more.