It is never too early to begin estate planning. Developing a comprehensive estate plan can safeguard your family’s wealth and assets for future generations. But when thinking about estate planning, it’s easy to get overwhelmed and give up. The good news is that estate planning can be easily handled affordably with an experienced Sebastian estate planning attorney.
Learn more about starting estate planning in this article, then speak to a local estate planning attorney for follow-up questions. An estate planning attorney can review your finances and legal situation and offer solutions for protecting your assets in case of your death or incapacitation.
Schedule A Consultation Today!
Why Estate Planning?
You have worked hard for what you have in this life. It should be protected and passed on to those you love. One of the biggest reasons to write an estate plan with an attorney is you will know that you can provide for your family if you are gone or incapacitated. Working with a skilled estate planning attorney on your estate plan provides these benefits:
Protect Your Children
Writing an estate plan with your attorney’s guidance protects the children if the worst happens. With estate planning, it is easy to appoint a legal guardian, set your financial wishes when you die, and leave critical instructions to protect your minor children.
Avoid Delays In Asset Distribution
If your assets go through probate, there will be delays before your loved ones can receive your money or property. This can be highly stressful because they may need money to pay for your funeral, burial, and other expenses. You can sometimes avoid probate by setting up a trust for some or all of your assets.
Your estate plan avoids this issue. Proper estate planning with your attorney will speed up the asset distribution process. This will be a weight off your loved one’s shoulders that they can use as they deal with their loss.
If You Become Incapacitated
An estate plan isn’t just helpful when you die. It also can be immensely helpful if you have an illness or accident and are incapacitated. For instance, if you have a stroke and are in a coma, who will be in charge of your assets? Who will decide if you should be kept on life support or let nature take its course?
Your comprehensive estate plan lets you choose someone you trust to handle your assets if you become ill or are in an accident and cannot make decisions. This gives you the peace of mind that is so important.
Give Your Peace Of Mind
You worked for decades to build what you own and have in your bank and investment accounts. Don’t you want to ensure that your money and property are protected and will go to the people you love most? The peace of mind of a good estate plan is priceless.
Donate To Charities
Many people want to give to causes they support when they pass on. With your estate plan, you can donate part of your estate to a charity.
What Is In An Estate Plan?
Estate planning almost always deals with the distribution of property and money, but it also often includes any or all of these:
- Designation of beneficiaries to receive your property when you die
- Directions for guardianship
- Transfer of accounts
- Medical power of attorney
- General power of attorney
- Transfer of property deeds
- Living will
- Trust
- Care of pets
One important aspect that many estate planning attorneys perform is making a trust. A trust is a key estate planning tool that expresses your desires and directions about how assets will be dealt with and distributed. Unlike your will, a trust is a private document that is not filed with the probate court.
Many estate planning attorneys like to say that a revocable living trust is like a king, meaning that it can be used in an estate plan, in many cases, to avoid probate. Your estate planning attorney can also set up a revocable living trust, which allows you to put yourself as the trustee and ensure it is properly funded.
Avoiding probate is an important goal that your estate planning attorney may help you achieve. The probate process controls the distribution of the estate under your will. Going through probate is sometimes necessary and beneficial, but there are also downsides. Your estate planning attorney can explain the pros and cons of the probate process and whether your estate will benefit from potentially avoiding probate by establishing a trust.
What Is An Estate Planning Attorney?
An estate planning attorney should be your first call when considering your estate plan. This attorney helps people plan how their assets will be distributed when they pass away and plan for potential incapacitation during life. An estate planning attorney is important for educating you on laws and regulations for managing your estate, including probate, distribution, and applicable state and federal taxes. Common tasks your estate planning lawyer may help with are:
- Helping you write your will
- Establish power of attorney if needed
- Assign a medical directive
- Assist with setting up a trust
- Work with your financial advisors
- Determine options for avoiding probate
What Questions Should You Ask An Estate Planning Attorney?
Now you understand that you should have an estate plan. But how do you decide which estate planning attorney to help you? You should choose an experienced estate planning attorney in your state with years of experience and positive online reviews. Once you have narrowed down the list, ask the attorney these questions to see if they are a good fit:
How Much Estate Planning Do You Do?
You usually want an attorney who only focuses on estate planning. Ask them how many years of experience they have in the field and how many clients they have. Find out if they have regular estate planning training. These questions give you an idea of whether they have a deep enough background in this complex field.
Do You Deal With Probate Litigation?
Probate litigation is involved in your case if there is a contested will, trust, or estate. Working with an attorney experienced with estate planning and probate litigation means they are ready for whatever might happen. They also will better grasp what can lead to litigation in probate and how it can be avoided.
What About Tax Issues?
Tax law is separate from estate planning and probate and requires education beyond what law school provides. Because of this, many estate planning attorneys are not well-equipped to answer tax questions. If you have a big estate subject to estate taxes, it’s important to understand how taxes may affect you. You should find an estate planning attorney with resources at their law office to address your tax questions.
Has The Estate Planning Attorney Seen Your Situation Before?
During the consultation, you should discuss your estate and financial situation with your attorney. By the time you are done, you should know that the lawyer has previously dealt with cases such as yours. Whether your case involves a special needs minor, dealing with an inheritance after you remarry, or something else, your attorney’s experience should fit your situation.
Will The Lawyer Help With Trust Funds And Beneficiary Designation?
A perfectly written estate plan isn’t always sufficient. If your plan has a revocable trust, you must fund it by transferring assets to the trust. Also, suppose you have an insurance policy or assets held by an investment firm or a bank. In that case, you must deal with beneficiary designations to ensure the assets are distributed as your plan states. Ask the attorney if they handle trust fund services and executing beneficiary designations.
How Does The Attorney Bill?
Most estate planning attorneys charge by the hour or a flat rate. How the attorney charges you may vary depending on the size of your case and how much the firm has to customize your estate plan. However they bill, you should understand the attorney’s billing and compensation before signing.
Lastly, you should feel good about the fit with the estate planning attorney when you select them. You and the attorney will probably be doing a lot of work together, and you should be comfortable with them.
More To Know About Estate Planning
When you start thinking about estate planning and hiring an attorney, there are other important things to know about the process:
It’s More Than Just Making A Will
Most people think estate planning is simply writing a will or creating a trust. However, more goes into an estate plan. A comprehensive plan will take care of you, your loved ones, and your estate while you are here and when you are gone. Your estate planning attorney does this with various legal instruments and documents and ensures that all assets are ready to transfer how you want.
If you own a small business you want to continue after you die, your will may not be enough to protect it. Estate planning can include business succession planning in your plan. Business succession planning means devising a roadmap for your business’s future and addressing vital issues, such as the distribution of assets, leadership transition, and continuity of the business.
Your estate planning attorney can advise on determining your business successors. This means designating certain people who will become the owners and leaders of the business. These people might be your family, important employees, or buyers.
You can also create a buy-sell agreement that sets terms for transferring business ownership if you die or become disabled. This will ensure a smooth transition and reduce conflicts between key business people.
Your Estate Plan Is Flexible And Can Change
Whether you want to give money to charity, protect it for your children and grandchildren, or have a legacy for your blended family, you can make an estate plan to achieve all your goals. Estate plans can be complex or straightforward; your attorney can adapt them to whatever you need. Your estate plan can also change over time, so checking with your estate planning lawyer every year or two is a good idea to reflect any changes.
For example, your estate plan should be updated if you have had any major life changes, such as a divorce. You may need to name new beneficiaries or deal with other major life changes.
DIY Estate Plans Aren’t Wise
Many people may think they can do a DIY estate plan by downloading a document online and completing it independently. Unfortunately, these documents are full of problems and may not reflect your unique situation. It can cost much more for your family to sort things out after you die than if you had retained an estate planning attorney when you needed it.
For example, if you used a DIY plan, the people you thought should inherit your assets may not. Imagine if the DIY plan is thrown out in probate and someone else receives the assets you didn’t want. These things happen when someone doesn’t pay for proper estate planning.
Estate Planning Is Part Of Financial Planning
The estate plan your attorney designs should work with your current finances, help you prepare for retirement, minimize taxes, and care for you if you become ill.
Estate Planning Isn’t Only For The Rich
People from all walks of life hire an estate planning attorney to write their plans. Why? They want to ensure the money and property they worked so hard for are distributed how they want. They also want to ensure they have critical legal documents most people need as they age, such as powers of attorney or medical advance directives. They may want to set up a trust for a disabled child or determine how to pass their property onto their children without taxes. You don’t need to be a multimillionaire to benefit from estate planning services.
Contact An Estate Planning Attorney Today!
Where do you start with estate planning? In most cases, you should start by calling an estate planning attorney. Ensuring your assets are protected when you pass away or become ill is critical. Talk to a Sebastian personal injury attorney today in your area for more information.