FREQUENTLY ASKED QUESTIONS
We realize that discussing estate planning may not be a comfortable topic for many people but often that is because people mistakenly believe that they do not have an estate until they die...but in reality, you have an estate NOW.
However, estate planning is undeniably one of the most valuable and protective steps you can take for both your own well-being and the security of your loved ones. We are here to guide you through the process.
What is Probate?
Probate is the legal process of administering a deceased person's estate. This is how the title to real property, vehicles, etc is transferred from the decedent to the beneficiaries.
What is an Estate?
An estate, in the context of estate planning and law, refers to the total sum of an individual's assets, properties, and liabilities at the time of their death. This includes everything that a person owns and owes.
What is Estate Planning?
Estate planning involves organizing and managing your estate to ensure your assets are distributed according to your wishes after your death. This can include creating wills, trusts, powers of attorney, and healthcare directives. Proper estate planning can also help minimize estate taxes and avoid the probate process.
Why is Estate Planning Important?
Estate planning is the process of creating a comprehensive plan for the management and distribution of your assets and affairs upon your death or incapacitation. It involves making decisions about how your property and financial resources will be handled, who will inherit your assets, and who will make medical and financial decisions on your behalf if you become unable to do so.
Who should consider Estate Planning?
ESTATE PLANNING IS CRUCIAL BECAUSE IT ALLOWS YOU TO:
Ensure that your assets are distributed according to your wishes.
Minimize taxes and other financial burdens on your heirs.Appoint trusted individuals to make decisions for you in case of incapacity.
Avoid family disputes and legal challenges.Provide for the well-being of your loved ones, including minor children and dependents.
Do I need a trust if I have a will?
While a will provides for the distribution of your assets upon your death, a trust can manage your assets during your lifetime and can provide more detailed and flexible planning.
What happens if I die without a will?
If you die without a will (intestate), your assets will be distributed according to state law, which may not align with your wishes.
What is a power of attorney?
A power of attorney is a legal document that gives someone you choose the power to act in your place.
What is the difference between a financial power of attorney and a healthcare power of attorney?
A financial power of attorney authorizes someone to manage your financial affairs, while a healthcare power of attorney allows someone to make medical decisions on your behalf.
What is a living will?
A living will, also known as an advance directive, outlines your wishes regarding medical treatment in the event that you become incapacitated and unable to communicate your decisions.
What should be included in an advance healthcare directive?
Your preferences for medical treatment, resuscitation, life support, organ donation, and pain management.
What is a healthcare proxy?
A legal document that appoints someone to make healthcare decisions on your behalf if you are unable to do so.
What is a personal representative and what do they do?
A personal representative aka executor is a person named in a will who is responsible for managing the estate, paying off debts, and distributing assets according to the will.
What should I do with my estate planning documents once they are created?
Store them in a safe place where they are easily accessible to your executor and inform trusted family members or friends about their location.
How do I appoint a guardian for my minor children?
You can name a guardian in your will. This person will be responsible for the care and upbringing of your minor children if you and the other parent are unable to do so.
Can I provide for the care of my pets in my estate plan?
Yes, you can set up a pet trust or designate a caretaker and allocate funds for their care in your will or trust.
What is business succession planning?
Business succession involves creating a strategy for passing on leadership roles or ownership of a business, ensuring its continued operation after the current owner's death or retirement.
How should I handle my digital assets in my estate plan?
Include information on accessing digital accounts and assets, such as online banking, social media, and digital photos, and specify who should manage these assets.Business Succession
What events should prompt a review of my estate plan?
Any life event...marriage, divorce, birth or adoption of a child, significant changes in financial status, or changes in tax laws.
Can I make changes to my estate plan myself?
It’s generally advisable to consult with an attorney to ensure changes are legally sound and properly executed.