Estate Planning

What is an Estate Plan?

An estate plan is your personal set of instructions that dictate what will happen to you and your stuff (your estate) at your death. If you have a minor child, your estate plan allows you to nominate who will be the guardian for your child. Estate planning documents also allow you to dictate who manages your finances when you cannot and who will make medical or end-of-life decisions when you are unable to communicate them yourself. Some common documents that are part of an estate plan include a last will and testament, financial power of attorney, medical power of attorney, advance directive or living will, and Health Insurance Portability and Accountability Act (HIPAA) authorization form. f customers can’t find it, it doesn’t exist. Clearly list and describe the services you offer. Also, be sure to showcase a premium service.

Why do I need an estate plan, and what happens if I do not have an estate plan in place?

Technically, you already have an estate plan. If you do not create a personalized estate plan, state laws dictate who will receive your money and property and the amount each heir will receive. Intestacy laws vary by state, but generally, your money and property will go to your nearest blood relative; that is, children, grandchildren, parents, siblings, nieces and nephews, and so on. If you are married, most states provide that your spouse will get everything provided that any children you have are from that marriage. If you have a blended family, the default rules are a lot more convoluted.

Additionally, without a personalized estate plan, the court will step in and appoint someone to make financial or medical decisions on your behalf when you are unable, whether or not you would have chosen that person yourself. This process can be incredibly time-consuming, expensive, and public.

Lastly, if you have a minor child and the other legal parent is no longer living or fit to care for your child, a court will be charged with finding an appropriate guardian for your minor child. This may or may not be the person you would have chosen. This could also cause arguments among family members when trying to decide who will care for your child.

Is creating an estate plan expensive?

As you begin the estate planning process, you may find that the cost of having a comprehensive and personalized estate plan prepared by an attorney is a little more than you expected. Consider, however, that this cost can be significantly less compared to the court costs and attorney’s fees your loved ones will incur to arrange care and choose decision makers at your incapacity or to wrap up your affairs at your death without an estate plan.

Are there cheaper alternatives to an attorney-prepared estate plan?

Yes, but a word of caution: While there are several do-it-yourself options available on the internet or at your local library, completing these documents without the advice of an experienced attorney could leave your loved ones in a sticky situation if something should go wrong. First, an estate plan is more than just one document. To make sure that you and your loved ones are protected no matter what circumstances come your way, several documents may be needed and they all need to sync together and not contradict each other. Second, if you get something off of the internet, there is no guarantee that the document will conform to the specific rules of the state you lived in. Third, the document you prepare may not address all of the possible situations that occur or change in your life nor is it likely to take into account your specific family situation or goals. Forms are basic and are meant to address the most common scenarios. Lastly, creating an estate plan yourself could lead to mistakes in the execution of the documents. Even if your documents explain everything perfectly, if they are not executed (that is, signed, witnessed, and notarized) correctly, your loved ones will have additional hurdles to overcome in trying to carry out your wishes, which will cost them money. So even though you may be saving money today, your loved ones could end up spending more (in both money, time, and stress) when wrapping up your affairs if you utilize some of these cheaper alternatives.

What do I look for in an estate planning attorney?

Estate planning is a very personal process. Therefore, the first thing you need to look for in an estate planning attorney is someone you are comfortable with. To properly plan for you and your loved ones, you may need to divulge sensitive information. If you are not comfortable discussing your family situation, financial matters, goals for your future, how your property and money will be passed on, or medical wishes with the attorney, this will impede the attorney’s ability to create a proper estate plan.

Next, you need to look for someone who is a good listener. The attorney must understand what you are saying (or not saying) to make sure that the right solution is provided to meet your needs. A skilled attorney can match your desired outcome with the right planning technique to carry it out.

Lastly, you should look for a problem solver and not a document producer. With the increasing number of do-it-yourself estate planning options, it is becoming easier to just fill out a form. However, an experienced estate planning attorney is not selling you a set of documents. The attorney is there to provide you with counsel and a comprehensive solution to the worries that keep you up at night and have motivated you to begin the planning process. Estate planning is not a one-size-fits-all solution. You are unique and deserve a plan that captures your needs and wants .

What can I expect from the estate planning process?

Once you have decided to move forward with the estate planning process and have made your call to the attorney’s office, here are some things you can expect:

You will likely be asked to fill out a questionnaire. This asks for information such as your name and address, the names and addresses of your loved ones, contact information for your financial and tax advisors, descriptions of what you own (property and investment accounts), and your goals or concerns. This will allow the attorney to get a sense of who you are, what you have, and what some of your goals are.
During the meeting with the attorney, they may ask you questions to expand upon the information you provided in the questionnaire. Standard questions include the following:
- Who would you like to make financial or medical decisions for you in the event you are unable to make them yourself?
- Who would you like to care for your minor child if you are unable?
- How do you want your loved ones to receive their inheritance: all at once, over a period of time, or upon achieving certain milestones?
Once you have met with the attorney, the attorney will prepare the necessary documents and schedule a time for you to review and sign them.
At the signing meeting, the attorney will remind you of the purpose of each document and invite a notary and witnesses to attend as you sign the documents.

Once the signing is complete, you will likely receive your original executed documents with instructions for any follow-up tasks that may need to be completed.

How do I get started?

To take the next step in planning for your and your loved ones’ futures, give us a call or send us an email and we can set up a call or meeting to start the process for you.