What is estate planning and why do I need it?

Estate planning involves taking a comprehensive look at your family, your health, and your finances and making informed decisions about your future.  Since none of us know when our time on earth will come to an end, we need to plan now for events that could occur tomorrow.  Failure to do so can leave your loved ones with unpleasant and unnecessary issues to resolve.

Many people under the age of 50 tend to make the assumption that they do not need to have estate planning documents, such as a Last Will and Testament, Durable Power of Attorney, Health Care Surrogate Designation, or Living Will. Nothing could be further from the truth!   The moment a person turns 18, they should get a Durable Power of Attorney, Designation of Health Care Surrogate and Living Will in place. If they own any assets, they should have a Last Will and Testament prepared as well.

Other Commonly Asked Questions:

Q:  If I’m married, why do I need a will?  Won’t all of my possessions automatically go to my spouse?

A:  Not necessarily.  That will generally depend upon how your personal assets are titled, and whether or not you have any minor children from a current or previous marriage or relationship.  A consultation at our office will afford you the opportunity to learn exactly where your assets will go upon your death and give you the opportunity to make sure that your wishes are carried out.

Q:  Is there a way that I can let my family know who I desire to get custody of my children if something were to happen to me and my spouse? 

A:  Yes.  The ultimate decision as to who would be awarded custody or guardianship of the minor children would be made by the court.  However, a Pre-need Guardian Designation for Minors is the best way to make your wishes known.  Don’t assume that just because you told “Aunt Sue” and “Uncle Don” that you would like them to raise the children in your absence that the issue is resolved.  Other family members may feel that they would be the best suited as your children’s guardians.  This could be the beginning of a family feud and possible courtroom battle.  One simple document can help to avoid that.  Our firm can prepare this document for you and have it properly deposited with the court.

Q:  I keep hearing about living trusts.  How do I know if I need one?

A:  Living trusts, also known as revocable trusts, have been used for hundreds of years by the wealthy as a method to avoid unwanted tax consequences upon their death.  More recently it has become the legal instrument of choice for people of all tax brackets who want to avoid probate proceedings upon their death.  If set up and funded properly, a trust can be a tremendous tool in probate avoidance.  However, just like a will, a trust is not a one-size-fits-all document.  It must be tailored to meet your needs and the needs of your loved ones.  Our firm can help you to determine whether or not you are a candidate for a living trust.