Estate Planning and Trusts

It's not easy to confront your eventual passing. But, if you don't, you run the risk of leaving your family unprepared and at risk of losing a significant portion of your assets to taxes.

Or, if you are incapacitated because of injury or illness, will your grief-stricken family know which medical interventions you want? Imagine how heart-wrenching it will be for them to guess and not know.

Don't put them through this unnecessarily. Make your estate plans now. Here's what you need to know.

Estate planning is the process of creating a plan in advance for how your assets will be managed and distributed in the event that you become unable to make these decisions or after you pass away. An estate plan consists of legal documents, such as a will, living trust, power of attorney, and living will. An estate plan can help minimize taxes and court fees by utilizing a living trust. Estate planning also allows you to be in control of your medical and financial goals if you were to become incapacitated, or otherwise unable to make decisions by yourself.

Following these simple steps can help you to plan an estate plan that matches your specific needs. 1. Make a list of all of your assets. Your assets are made up of everything you own and include items such as;

• Your home
• Any real estate properties
• Vehicles
• Antiques
• Jewelry
• Valuable possessions
• Insurance policies
• Accounts

2. Update your beneficiaries Although life insurance, retirement accounts, and annuities are also considered assets, they will be passes onto whomever you named as your beneficiary on that policy. Consider any major life changes that may have happened since you created those policies, such as divorce, spousal death, or birth of a child. Be sure to keep your beneficiaries current to ensure your benefits go to the right person.

3. Gather necessary documents With your lists of assets made, gather all the corresponding paperwork related to your estate-hourisng deeds, vehicle titles, bank account information, and life insurance policieis. Keep these in a safe place and let your family know where to find them.

4. Designate your power of attorney In the event that you become ill, who would you trust to handle your medical and financial decisions? A power of attorney can make these decisions for you. You can also name this person to execute your will. Talk with your family and make sure that everyone is aware of your decisions.

5. Schedule a meeting with an attorney An estate lawyer is knowledgeable about state-specific laws, taxes, and court fees. Working with an attorney can help you make good decisions regarding your estate. As you work through your plan, you’ll likely have many questions and get confused about what is best for you and your family. Estate planning attorneys will be able to provide guidance and give you and your family peace of mind that your documents were prepared properly. Keep a copy in a safe place and let your family know where to find them.

Revisit and update your estate plan as your family and financial circumstances are likely to change. Check back in with your lawyer to see if there have been any legal or tax changes that could impact your plan.

Every estate plan has it own unique set of needs, causing the costs to vary. A basic plan may cost as little as $150, but if you have a more complex situation and more documents to prepare, it will cost more. While it is always important to shop around for the most affordable price, cost should not be your only deciding factor.

Online Estate Planning vs. Hiring an Attorney

Online estate planning is usually advertised as simple and low-cost, but hiring a professional is a still a much better option. Although using a lawyer may be a more expensive option, it protects you from the significant chance of your online estate plan not holding up in court. Online estate planning does not cater to your specific or specialized needs and does not provide an opportunity to speak to a professional about your concerns. In addition, the majority of sites only assist is creating your will and don’t aid in your heirs avoiding probate, which can take up to a year!

Keep the following tips in mind to help minimize your estate planning costs and help to avoid any unexpected expenses.

1. Research different attorneys. Look into their reviews and compare them to one another. Be sure that they meet your specific needs.
2. Educate yourself. Go to your initial meeting knowing whether you need just a basic estate plan or if you’ll need more documents to meet your needs.
3. Discuss costs. Find out what your financial implications are so that you can plan accordingly.
4. Draft a written agreement with your attorney. This agreement should include exactly what documents your lawyer will write for you as well as any costs. Both you and your attorney should sign this.

Thinking about your estate plan is the first step to ensure your loved ones are taken care of when you’re gone. Ensuring that your wishes are carried out, both financially and medically will also be a benefit to yourself. Planning an estate is not an easy task to start, but it will help to reduce estate taxes, legal fees, and time spent in court for your loved ones. You should always involve a professional. Without a professional estate plan, the court decides how to distribute your assets, after taking heavy fees and taxes, leaving your loved ones with less than you would have wanted.