Your Guide to Estate Planning

Estate Planning Definition

Quite simply, estate planning is nothing more than specifying who gets what when you die, as well as how your affairs should be handled if you’re incapacitated and who should execute your wishes.

Who Needs an Estate Plan?

Estate planning is often misunderstood as being only for the wealthy. If you have an income, a car, a home, investments, a bank account, or a combination of these things, you have an estate – which means you need an estate plan.

Dividing assets without the guidance of a legal document often causes significant strife within families, for one. You also risk leaving your assets to unintended beneficiaries. In some states, for example, if you are married at the time of death and didn’t have a will, your spouse would not receive all of your assets if you have children.

And without an estate plan – even if your loved ones can divvy up your property without disagreement – your assets can get tied up in probate, a time-consuming public court process.

Estate Planning Goals

An estate plan can help you accomplish the following goals:

• Name the family members, loved ones, and organizations or groups you want to receive your property following your death.
• Transfer your property quickly, with as few legal hurdles as possible.
• Name the person or institution – ideally a fiduciary who is obligated to act in your best interest – that can act as your proxy, settle your estate, and distribute your assets.
• Outline the type of medical care you do or do not wish to receive should you become incapacitated.
• Express your wishes and preferences for funeral arrangements and how related expenses will be paid.
• Potentially minimize or eliminate estate and inheritance taxes.

Estate Planning and Wills

If you die without a will, you’re assuming the government knows best. Everything you own will be distributed based on state laws. But the law doesn’t know you, your loved ones, your values, or your wishes. A will puts you in the driver’s seat and eases the burden on your loved ones during what is already a difficult time.

Estate Planning and Trusts

While a will can determine who may receive your assets outright, trusts act as a more customized, all-encompassing, multi-purpose planning tool that can also help beneficiaries avoid the cost and hassle that comes with probate.

Estate Planning and Your Legacy

Estate planning can and should go beyond who gets what. It’s important to consider your core values, your belief system, and what you want to pass on to not just your loved ones but to your community. How do you want to be remembered? What legacy do you want to leave?

For many, this is where charitable giving comes into play. No matter the size of your estate, if your heart is in certain causes, you can decide to give to those causes upon your death.

We can help you determine what organizations and charitable giving vehicles align with your values and help you calculate a plan to donate to important causes in a way that maximizes your generosity and offers you and your beneficiaries the greatest tax benefits.

Do I Need an Estate Planning Attorney?

For most people, hiring an estate planning attorney makes the most sense. Estate plans can get complex fast, and even straightforward estates can feel overwhelming if you’re not trained in the area. Working with an estate planning attorney can take the pressure off you since they have extensive knowledge of state statutes. It’s their job to stay on top of the law as it changes and make sure your estate plan is in compliance.

An estate planning attorney will work with you to understand you and your family’s specific needs, asking questions and offering solutions that align with your specific circumstances and goals. They also verify accuracy, ensure the plan complies with the law and can work with your financial advisor to confirm your will coordinates with your financial accounts, your savings plan, and legacy wishes.

Estate Planning Costs

Your estate planning attorney’s fees will depend on their experience level and the complexity of your situation and the services you require.

How to Create Your Estate Plan

Most Americans need an estate plan of some kind, and most Americans don’t have one. If you’re not sure where to get started, use this checklist as you take the important step in creating an estate plan.

• Take stock of what you own.
• Compare your estate planning options, namely wills and trusts.
• Identify your beneficiaries.
• Outline your wishes for your funeral, end-of-life, and medical care if you are incapacitated.
• Find an estate planning attorney.
• Routinely revisit your estate plan.