Estate Planning Basics
Estate Planning is the act of planning out who will receive your assets when you pass away. It is about making a plan in advance, choosing the people you want to receive your assets and doing all that through a will or trust. When we talk about an estate in the context of Estate Planning or Probate we are referring to all your assets, property, bank accounts, cars, and anything you own.
An estate plan is not just for the purpose of passing on your assets to your loved ones, but it also can include several other indications. A good estate plan will often also include guardianship instructions regarding your children, provide funds for special needs family members, provide transfer of business instructions, power of attorney designations, and any final wishes. Estate plans can come in many forms, the two most common forms of estate plans are will and trusts. Wills and trusts are very similar in most regards and are the most common documents used in estate planning. But there are several other kinds of documents that might be used in estate planning from Power of Attorneys, to Advanced Health Care Directives, to Special Needs Trusts.
Who is Estate Planning For?
Estate planning is often associated with something you do alongside retirement planning or only if you are super wealthy. But this is far from being true. Estate planning is about being prepared and taking care of your loved ones. It’s not about your age or your income level, anyone can start an estate plan.
People often put off estate planning because they feel like they can worry about it later or just because it seems too complex. This makes sense but is a grave mistake. Everyone needs to be prepared if something might happen, even if you are healthy. You have people that you want to take care of, and the fact that they might not get part of your estate if you don’t have a will in place is the main reason most people should have an estate plan.
Planning ahead of time also helps with dealing with probate when the time comes. The probate process can be quite lengthy and stressful for your family, having a solid trust in place can dramatically improve and alleviate the time and complexity of the probate process. And not having a will or trust in place at all can significantly add to the burden of probate. This is because without a will or trust the estate is labeled intestate and the probate judge will end up deciding who the executor and beneficiaries will be. What the court might decide might be very different than what a person would decide for themselves, that’s why so many people opt to write their own will and make sure the court avoids these tough decisions. If you would like to learn more about the probate process, check out our comprehensive guide.
How Do You Start An Estate Plan?
Starting an estate plan can seem complicated, many people don’t know where to start. There’s many ways of going about it. The most sure way of starting is talking to an expert. There’s just a lot of complexity in certain plans, and when you go at it alone you run the risk of not doing it properly. Since these are legal documents you want to make sure that things are done properly and the documents are valid.
An estate planning attorney can really help in laying out everything you need. A proper estate planning attorney will make an effort to really understand your family, your goals, and your finances. This is important because what works for one person is not going to be the best option for another person, a proper estate plan is tailor made for you. Some people might be better suited for a will, others might need a more complicated trust based plan.
If you want more information regarding estate planning, we would be happy to help you! Visit our website for extensive information about the topic, or contact us today to talk to an estate planning attorney at (860) 232-1920
