Estate Planning
If you’re not sure what estate planning is or whether you need it, you are not alone...
In fact, you join millions of Americans, who are confused by the term and wonder if estate planning is only for the rich.
Let us assure you that you have come to the right place. Here, you will find out what estate planning really is and whether you need an estate plan. We’ll answer your other estate planning related questions as well.
In addition, we are happy to connect you with your choice of a myriad of estate planning attorneys, who can make it happen. They are highly qualified and caring lawyers, who can help you to design, draft, and implement a plan that will protect you and those you love
What is Estate Planning?
It makes sense to answer the most basic question first, “What is estate planning?”
You may be relieved to know that estate planning is simply the process of combining the law with your specific wishes to protect you and your loved ones, pets, and assets. The end result is a pile of documents.
However, we suggest you think of that pile of estate planning documents simply as your “instruction book”; it’s a lot less intimidating.
If you become incapacitated and when you die, your trusted helpers (e.g. loved ones) need to know what to do. They will simply look to your instruction book for guidance.
Do I Need an Estate Plan?
If you are age 18 or older, you definitely need your own estate plan. If you are younger than 18, you are protected by your parents’ estate plan – if they have one.
That being said, it may surprise you to know that you do have an estate plan right now – even if you don’t know it.
Here’s what we mean: If you choose not to meet with an estate planning attorney and implement your own estate plan, the state has a plan for you – however, you may not like it. Most folks don’t.
For Example:
- First, if you don’t have a health care power of attorney, either state law or the courts will decide who makes health care decisions on your behalf – will it be the person you’d want?
- Second, if you don’t name guardians for your children in your will, the judge will decide who raises your children and it may not be the person you’d select.
- Third, if you don’t have a will or trust that distributes your assets, state law (e.g. intestacy laws) will determine who gets what – and it may not be whom you’d choose.
If you want to control what happens if you become incapacitated and when die, you must have an up-to-date estate plan that actually works – meaning it does what you want it to do.
What Does an Estate Plan Look Like?
Your estate plan really will look like an instruction book. It’s full of papers (e.g. documents) with instructions.
Basic estate plans commonly contain wills, powers of attorney for finances and health care, living wills, HIPAA releases, organ donation authorizations, and temporary guardians for minors authorization.
Often folks add a revocable living trust (aka “living trust”) to their basic estate plan. Living trusts have the added benefit of containing a whole lot more instructions and, therefore, more benefits and protections for you as well as your loved ones, pets, and assets.
Only the estate planning attorney, who chats with you and knows what you own as well as your goals, can design an estate plan that works. Each plan has similarities and each plan has differences – just like the people who create them.
What Else Do I Need to Know About Estate Planning?
We’ll nutshell it for you. Here are the 5 most essential things you need to know about estate planning, if you want your estate plan to work.
Your estate plan has a greater likelihood of working if you:
- Work with an estate planning attorney, who focuses her legal practice just on estate planning and related matters.
- Ask your trusted helpers if they are comfortable being named in positions of responsibility and name contingent trusted helpers, in case someone cannot serve when the time comes.
- Ask your estate planning attorney about proper asset ownership and trust funding because if you don’t own your assets properly, your estate plan will not do what you think it’s going to do.
- Update your estate plan on a regular basis, every 3 to 5 years or upon the occurrence of a significant life event. Estate planning is not a once and done, it’s a process.
- Make sure your trusted helpers know that you have entered into the estate planning process, where your estate planning documents are stored, and how to contact your estate planning attorney and other trusted advisors.
Please feel free to peruse our other estate planning articles and be sure to consult with the estate planning attorney of your choice. You and your loved ones will be glad you did.
