February 5, 2020

Estate planning is not just for the wealthy. Most of us, no matter how modest our circumstances seem, will have some property to be distributed after our death. Estate planning can protect your minor children, help eliminate family conflicts, minimize taxes, and help your beneficiaries move through the aftermath of loss.

What is Estate Planning?

Estate planning, simply put, is making a plan in advance for what will happen to the things you own when you die. Your estate is comprised of everything you own, including your home, car, bank and investment accounts, life insurance, and personal possessions.

What estate planning does is give you control over how your estate is distributed. You indicate what you want your heirs to receive, and of course, you want this done with the least amount of taxes and legal fees for your family. The goal of estate planning is to protect and provide for your heirs.

Estate planning also includes

•       Instructions for your care should you become disabled.
•       Naming guardians for your children.
•       Insurance – Life, Disability, and Long Term Care.

When Should I Start?

Many people put off estate planning because it can feel uncomfortable, and even morbid, to think about your own death. Some put off estate planning because they don’t think they’re old enough or own enough. Some put it off because they don’t understand it, or they feel like they’re too busy and it can be put off. Having a will and trust attorney to guide you through the process can alleviate many of these concerns.

Estate planning should be started as soon as possible, allowing for an ongoing process of updating and revising as life and circumstances change. Most people begin thinking of estate planning at pivotal moments in their life. Some people begin at the birth of their children, while others don’t think of it until retirement. The smartest choice is to start early. Many of us feel we are fit and healthy – until we aren’t. And waiting until a catastrophic event is often too late.

What Are the Consequences of Delaying Estate Planning?

If the unthinkable happens and you don’t have a plan in place, the state will take over. At disability, a court appointee will decide how your estate will manage your care. At death, your estate will enter probate, and the court will decide how to distribute assets according to the state probate laws. Most of the time, your spouse and children will receive a share, but the court will determine how much. If your children are still minors, the court will control their inheritance, and if both parents die, the court will choose a guardian.

Essentially, by delaying, you are potentially giving complete control of everything to the state. It’s a long process, and can cost your heirs plenty in taxes and more grief.

How Do I Get Started?

Contacting a will and trust attorney is a good first place to start. Professional advisors can guide you through the process of drawing up the legal and financial documents that will ensure your heirs are able move through the process as smoothly as possible. While there are programs that allow you to do more yourself to save money initially, a good will and trust attorney can use their knowledge and experience to save your family much more in the long run. For answers to more of your questions about estate planning, contact my office today.