Whether you are a young parent, a retiree, or somewhere in between, you need a plan for what will happen if the unexpected should happen. Planning for the unexpected includes you and the people and things you value in this life.

Who needs an estate plan? You need a plan for your own life in case you become incapacitated. You need a plan for anyone in your life who is valuable to you. You need a plan for who will inherit your assets. This is all part of estate planning. 

Make Plans For Yourself

• A Durable Power of Attorney:
  You need to choose someone you trust that can handle your assets and finances if you are incapacitated or pass away.
• A Healthcare Proxy:
  You need to choose someone you trust to make your healthcare decisions should you become incapacitated. 

We all know stories about people who were in comas or on life support whose families struggled with what to do about their healthcare decisions. Sometimes there were ugly court battles over what should happen. No one wants their family to argue in court over their life support or feeding tube. These are decisions that we would like to have a say in, but if your voice is taken in an accident or health event, your say in these decisions is gone.

We don’t want to think about these types of situations, but if you value yourself and your family, it is best to let your wishes be known just in case the unexpected happens. 

Make Plans For Others:

• Designate a Guardian for Children:
  Family and friends need to know who should care for your children should the unexpected happen.
• Designate a Benefactor for Children:
  Family and friends need to know who will care for the assets you leave children until they are of age. 

If you and your spouse should pass away, your children are at the mercy of the state to decide who will care for them. The decision will be made without your input and could involve peoples’ opinions that you do not value. Your children are worth a bit of planning.

It is uncomfortable to think about these types of scenarios, but your children will be thankful that you thought ahead if the unexpected happens. A knowledgeable attorney can help you think through these types of difficult situations and come to a conclusion about what is best for your family. 

Make Plans For Your Assets:

• A Will:
  This document lets everyone know where your assets are and who will get each of them after your death. Without a will, your assets will be tied up in probate court and the state could grab a larger chunk in taxes.
• Trusts:
  These are legal instruments that allow you to avoid probate and have more say in who receives assets and when they receive them after you pass away. Trusts can also save you and your heirs thousands in taxes.

Your Will

In your will, you can include instruments of law such as a transfer-on-death (TOD) document that allows large assets to go directly into the hands of your beneficiaries after your death. Your will spells out your plan for every asset you own and how you want each of them to be distributed.  

Probate Court

If you do not have a will, your estate (everything you own) will be declared intestate and the state will appoint an executor to handle the distribution of your assets. This can tie up your monetary assets, your house, and your accounts for years as the state decides how to handle your estate. Your heirs must attend probate court which can be an expensive process and tie up their time also.  

Inquiring Minds Want To Know

Without a will, your estate details are open to the public. Anyone who wants a piece will fight for it in probate court. Anyone can see details related to your debts and assets and use the knowledge as they choose. A will is a way to hold onto your privacy and make your own decisions based on your own values and beliefs. 

The Beauty Of Trusts

Trusts can help you distribute assets to others at certain times or intervals. There are many different types of trusts that can be used for purposes such as avoiding estate taxes, avoiding generation skipping taxes, and keeping control over your estate while you are alive. A living revocable trust is one option that allows you to plan for your life now while having an extensive plan for after you are incapacitated or have passed on.

A trust can also give you control over how events or circumstances change the terms of your will. You can be the trustee of your trust while you are alive and appoint a trustee for after your death. You can also choose to have a board of trustees distribute the assets to your heirs based on factors that you choose.

Seek A Knowledgeable Advisor

Talk with your lawyer about what kinds of needs you have. Attorneys are knowledgeable about the estate and tax laws that are specific to your situation.  Making a plan for the future is for everyone who is an adult. Whether it involves large sums of money or not, estate planning is a necessary endeavor.

Who Really Needs An Estate Plan?

If you have jobs and kids, you need a plan. If you are retired and have health issues, you need a plan. If you are a single adult with family and friends or pets that you care for, you need a plan. You need a plan so that random government officials do not decide what happens to you and the assets you have worked so hard for, the children or pets you lavish love on.

Leave A Legacy

Planning for the unexpected is not fun, but it is necessary. Don’t let lack of planning make life harder for yourself and others.  Drawing up an estate plan can be daunting, but with a little help from a knowledgeable estate planning attorney, you can decide what plans are best for you and your family. There are many different ways to work around taxes and probate court. Leave your family a legacy of caring about the future. Make your plan today.