Our Frequently Asked Questions About Estate Planning

Estate planning is an important part of ensuring that the distribution of our assets follows our wishes. Most people avoid the topic of estate planning because it coincides with death. Now, we understand that because of that, it is an uncomfortable topic. But we never know when we may pass, and estate planning can help ensure your wishes are met and minimize the stress on your family. Although most people know what estate planning is, they have many questions about it. Below, we will explore some of the common questions people have and their respective answers.

What happens if I die without a will?

When you pass without a legal will, you will have died “intestate.” Your state’s laws of descent and distribution will be used to determine who gets what from your estate. Each state has its own laws regarding this, but generally, spouses and children are the first in line to receive the assets from your estate.

What is a trust?

A trust is a fiduciary agreement that allows a third party, known as the trustee, to hold assets on behalf of the beneficiaries. The trustee is the legal owner of the property, and the beneficiaries are the equitable owners of the trust.

Why do I need to plan my estate?

By planning your estate, you can ensure that your assets are distributed the way you want them to be. You can control exactly who can get what. Additionally, it can help you minimize estate transfer taxes.

What is power of attorney?

Power of attorney is a written authorization to represent someone on their behalf in business affairs, private matters, healthcare, or other legal matters. You can stipulate exactly when and how they can make decisions on your behalf.

Can I leave money to charity?

Yes, when you are planning your estate, you can allocate money to be donated to charity.

Will my beneficiaries’ inheritance be taxed?

It will depend on the state in which you live. As of 2013, the federal estate transfer tax was eliminated. Currently, only six states charge an estate transfer tax.

When should I hire an estate planning attorney?

Many people believe estate planning is only necessary later in life, but working with an estate planning attorney can benefit adults of any age. Major life events such as getting married, having children, purchasing property, or starting a business are all good times to begin planning your estate.

A knowledgeable wills and estates lawyer can help you create essential legal documents such as a will, living trust, power of attorney, and healthcare directives. These documents work together to ensure your wishes are honored and that your loved ones are protected in the future.

What documents are typically included in an estate plan?

A comprehensive estate plan usually includes several legal documents that outline how your assets and personal affairs should be handled. An experienced estate planning attorney may recommend creating a will, a living trust, powers of attorney, and healthcare directives. Each of these documents works together to protect your assets, outline your wishes, and provide instructions for financial or medical decisions if you become unable to make them yourself.

How can a trust benefit my estate plan?

A trust is a powerful estate planning tool that allows assets to be managed and distributed according to your wishes. Our estate planning attorney can explain how a trust may help avoid probate, provide greater privacy, and allow you to control how and when beneficiaries receive their inheritance. Trusts are often used to preserve wealth and provide long-term financial security for future generations.

Can estate planning help my family avoid probate?

One of the main reasons people work with an estate planning attorney is to help their loved ones avoid the probate process when possible. Probate is the legal process used to distribute assets when someone passes away without a properly structured estate plan.

A skilled lawyer can help you structure your estate plan using tools such as trusts and beneficiary designations. These strategies can make the transfer of assets smoother and less stressful for your family during an already difficult time.

How often should I update my estate plan?

Your estate plan should be reviewed regularly to ensure it still reflects your wishes and current circumstances. Most estate planning attorneys recommend reviewing your plan every few years or after major life events such as marriage, divorce, the birth of a child, or significant changes in your financial situation. Keeping your estate plan up to date helps prevent confusion and ensures your assets are distributed according to your intentions.

What should I bring to my first estate planning consultation?

When meeting with an estate planning attorney, it’s helpful to bring information about your assets, debts, and family situation. This may include property records, bank account details, investment information, and a list of beneficiaries you would like to include in your estate plan. Our attorney can use this information to understand your goals and recommend the right estate planning tools for your situation. During the consultation, you can ask questions and begin building a personalized plan designed to protect your assets and your family’s future.