The Basics of Estate Planning

Estate Planning

Contrary to the belief of many, having an estate plan isn’t about drafting a will or a trust but a way to make all your assets seamlessly transferable. An estate plan only comes into play when you’re dead. It must be well-detailed and clear for all parties to understand and actualize.

To get an estate plan done properly, you must avail your lawyer of details, like a will, trust, or healthcare power of attorney. The document provides clear guidelines for your family members to access and manage your property once you cannot do so.

Why You Need a Lawyer for Estate Planning

Seeking the services of a qualified estate planning attorney will help you since they understand the law and will ensure your family’s financial stability. Find an estate planning lawyer with various skills who is well-versed in the law, financially literate, and a good counselor.

A lawyer with these skills can identify your wishes and draft the documents needed per the law. It’s overwhelming to think of your death yet continue to filter experts to help you navigate legal intricacies and nuances.

Therefore, you need a compassionate estate planning attorney to listen and lift the burden off your back. Here are more reasons as to why you need an estate planning lawyer.

• If your children are minors, you must appoint a guardian if you die or are incapacitated. The person you appoint should be able to manage their emotional and financial.
• When you have assets to share among particular family members and friends
• Define when the assets you give to family or friends will be available to them only upon death or during your lifetime.
• Name any charities you wish to support in your will or trust.
• Outline the plan to minimize income tax or probate costs in the estate plan.
• Find out if you need a policy to cover capital gains or other income subjects like income taxes.
• Decide to transfer asset ownership through a trust or change of ownership.

The Process of Estate Planning

Estate planning is a process that determines how the assets of an individual are to be preserved, managed, and shared after death. The document also provides for an individual’s assets and financial responsibility if incapacitated.

Although many think this is an act of the stinking rich, anyone can do it. Some properties that an individual includes in an estate plan include bonds, stocks, houses, cars, artwork, pensions, or debt. The reasons for drafting an estate plan are;

• Preserving family wealth
• Providing for a surviving spouse and children
• Funding children’s or grandchildren’s education
• Leaving finances for children’s legacy for a charitable cause

Avoid these Common Estate Planning Mistakes

Even after hiring a lawyer, you must avoid common mistakes that cause delays, misunderstandings, or inaccuracies. Here are some of the most common mistakes to avoid.

• Not having an official plan estate plan
• Failure to update an existing estate plan over time
• Lack of arrangements for an estate plan if you’re incapacitated
• Illegitimate ownership of property, meaning passing them on will be impossible
• Failure to include charitable gifts
• Leaving children (minors) without an appointed guardian
• Underestimating or not considering the implications of taxes
• Lack of liquidity of assets
• Naming children on property deeds as they can have significant tax implications

Conclusion

Sometimes, you may not require a lawyer to draft an estate plan. However, if you have a complex estate, it’s better to involve a lawyer who understands the process. A good estate planning lawyer listens to your interests and crafts a document that captures them perfectly.