Why do I Need a Comprehensive Estate Plan?
It can be uncomfortable and challenging to think of how you would like things to be handled when you pass; but proactive planning can dramatically benefit your loved ones. One of the key functions of a properly drafted estate plan is to dictate how you would like your assets to be handled when you are gone. A well-drafted plan can be used to avoid probate and intestacy—both of which can mean your assets are distributed according to the State’s default laws that may not suit your individual situation and preferences. Probate is also a long and expensive process.
Common Estate Planning Documents
While everyone has different needs, we typically prepare the following essential documents:
Trust
A Trust is a type of legal document that allows the person establishing the Trust (sometimes referred to as the Trustor or Settlor) to hold their assets in a way that can last for years—even generations—after their passing. You can set up a Trust for all of your assets today, without experiencing any negative consequences or lack of control. However, once you pass, your Trust will dictate how your assets can be held or distributed to others—all while avoiding the slow and expensive probate process.
Part of the Trust will designate a person to administer the Trust when you are gone (referred to as the Trustee), who will be bound to follow your wishes in how to manage the assets. You can direct them to handle the Trust in a number of ways to effectuate your wishes and protect those you care about. Assets passed through a Trust are preferable to passing through probate.
Will
Even with a Trust, a Will is an important safeguard against the default intestate rules that may not suit your unique situation. A Will can simply designate that assets of your estate shall be transferred to your Trust upon your death, ensuring that any assets left out of your Trust are managed in accordance with your wishes outlined in the Trust.
A Will can also be used to designate a guardian to care for any minor children you have.
Advance Health Care Directive and Power of Attorney
These documents are critically important to ensure that your wishes are properly taken care of while you are still alive but incapacitated and unable to make medical, legal, or financial decisions on your own. You will designate an agent you trust to make these important decisions on your behalf.
Once your documents are drafted, we will help to ensure that your assets are properly transferred to your Trust.
What Questions Should I Be Asking Myself?
When drafting your estate plan, it is important to think ahead and determine how you would like things to be handled when you are incapacitated or gone. You may have unique needs, but please consider the following foundational questions:
- Who do I want to receive my property (money, house(s), etc.) when I am gone?
- Who would I like to take care of my children if I am unable to do so myself?
- When people do receive money from my estate once I am gone, would I like them to have it outright, or would I want to retain some control? If the latter, what kind of control would I like to exert (e.g., money being spent for certain expenses, money being held until a certain age, etc.)?
- Who do I want to make medical, legal, and financial decisions for me if I am unable to make them myself?