Everyone needs an estate plan. Properly protecting your future and loved ones requires strategy and intentionality. We are here to assist you with crafting a plan that lays out your wishes and ensures that those people or organizations you care about are provided for upon your passing. There are a few things you should consider when thinking about your estate.

What is your estate?

Your estate is comprised of everything you own: your home, bank accounts, 401k, business holdings, investment accounts, etc. In addition to what you own, your estate must also consider your minor children and pets. It’s important to be thoughtful and strategic about how, when, and to whom your estate is divided and distributed. Inaction can lead to the government taking over control of the distribution of your assets after you pass. This is known as intestacy. Without having a plan in place, your hard-earned money and property will be distributed according to state law, and the courts may have to make those decisions for you. And what they decide could be very different from what you would choose. This intestacy process places your legacy in the hands of the government and leaves your loved ones with few options.

• Last Will and Testament

A will is a legal document that allows you to designate who will receive your money and property upon your death. You can name anyone and give them any amount you deem appropriate. You can also use this document to specifically mention those individuals you are choosing to leave nothing to. While a will is a great tool to formalize your wishes about what happens to your belongings after your death, it will require court involvement. Once you have passed, the person you have named as the personal representative (i.e., the responsible person who will oversee the distribution of your money and property to the appropriate individuals), must file your will with the probate court, making it a part of public record. The level of oversight by the probate court can vary depending upon the situation. However, even the minimum amount of oversight can be costly, time-consuming, and lacking in privacy. This approach can bring about messy contests in a very public forum.

 

• Trust

An as alternative to a will, many people decide to utilize a trust to distribute their money and property upon their death. The benefit of this approach is that in addition to being able to write out instructions for what happens to your belongings, this document also allows you to provide instructions about what to do with the money and property should you become unable to make decisions for yourself. You can guarantee that your money will be accessible to someone you trust to take care of you in the event you are not able to do so yourself.

 

If you choose to use a trust, you will also need a will, but it will be a special type of will called a “pour-over will.” This type of will merely tells the probate court that money or property that is not a part of your trust is to be distributed to your trust at your death. So ultimately, the instructions in your trust will still be the ones that are followed.

 

• Living Will

This document allows you to help your loved ones and healthcare providers make decisions that honor your preferences for end-of-life care. It gives you, the patient, the choice and the right to make decisions about your medical care in the case you are ever unable to communicate them yourself, such as being in a coma or terminally ill.

 

• Financial Power of Attorney

This document allows you to name a person to act on your behalf for financial matters. This can include allowing someone to pay your taxes or communicate to the IRS on your behalf, open a bank account, sign checks, pay bills for you, etc. This authority can be incredibly useful if you are unable to conduct these types of transactions yourself, whether because you travel a lot or because you become physically or mentally unable to do so.

 

• Medical Power of Attorney

This document allows you to designate who can make medical decisions for you. You can name whoever you want. There is no requirement that it has to be a family member or spouse. During a chaotic and sensitive time, this document will allow your chosen individual to have the unquestioned authority to be at your side, obtain the necessary information, and make decisions for you.

 

• Beneficiary Designations

If you have a life insurance policy, retirement account, or an employer-sponsored retirement plan, there will typically be forms for you to complete naming beneficiaries. Upon your death, the funds will be distributed to the individual(s) or charity you have designated, without court involvement. If you fail to name someone, the money, in most cases, will be distributed to your estate (which means a court will be involved, leading to delays in distribution and additional expenses).

 

• Existing Estate Plans

If you have already had estate planning documents prepared, you should review them periodically. Laws change frequently, so it is crucial to have a qualified attorney review your current estate plan. This review could open new planning opportunities that may have not been available to you in prior years.

Building and Protecting Your Future – Estate planning can provide you with peace of mind knowing that those you care about will be taken care of after you are gone.