Estate Planning
A will or trust contest is a legal battle over the distribution of an estate. These contests can be costly and time-consuming. Statistics show that more than half of Americans do not have a will.
This means that their assets will be distributed according to state law, which may not be what they would have wanted.
Estate Planning Is for Everyone
Estate planning is important for everyone, not just retirees or the wealthy. While people may think about it more as they age, the reality is that we can’t predict our lifespan and unexpected events can happen at any age.
For families with modest assets, good estate planning can have an even greater impact as the consequences of poor planning can be more detrimental to their financial well-being.
Do You Have An Estate?
Nearly everyone has an estate. Your estate includes everything you own such as your car, home, real estate, bank accounts, investments, life insurance, furniture and personal possessions.
When you pass away, you’ll likely want to have control over how your assets are distributed to the people or organizations you care about. To ensure your wishes are followed, it’s important to provide instructions on who should receive your assets, what they should receive and when they should receive it.
Estate planning involves making these plans in advance and taking steps to minimize taxes, legal fees and court costs. By planning now, you can make the process easier for your loved ones later.
How Can I Help You?
I will guide you to create a good estate planning that does the following:
- Includes instructions for your care and financial affairs if you cannot work or earn money when you are alive.
- Making arrangements for disability income insurance to replace your income if you’re unable to work due to illness or injury. It also involves setting up long-term care insurance to cover the costs of extended care in case of illness or injury, and life insurance to provide for your family in the event of your death.
- Transfer your business at your retirement, disability, incapacity, or death.
- Have a guardian to cater for your minor children’s care and inheritance.
- Provide for family members with special needs without disqualifying them from government benefits
- Take care of your family members who might be irresponsible with money or who may need protection from creditors or in the event of divorce.
- Minimize taxes, court costs, and unnecessary legal fees, which may include funding assets into a living trust, completing or updating beneficiary designations, or otherwise aligning your assets with your estate plan
If you don’t have an estate plan, your state will use the default plan for you, but it may not be what you want.
For example, in the event of disability, if your assets are in your name and you’re unable to conduct business due to mental or physical incapacity, only a court-appointed individual can sign for you. The court will supervise and control how your assets are used for your care through a conservatorship or guardianship. This process can be expensive, time-consuming and difficult to end.
If you die without a valid estate plan, your assets will be distributed according to your state’s intestacy laws through a court-supervised probate proceeding. In many states, if you’re married with children, your spouse and children will each receive a share of your estate. This could result in your spouse receiving only a fraction of your estate, which may not be enough to live on. If you have minor children, the court will control their inheritance and appoint a guardian if both parents die.
Given the choice, wouldn’t you prefer to handle these matters privately with your family rather than through the courts? Wouldn’t you prefer to have control over who receives what and when? And if you have young children, wouldn’t you prefer to choose who will raise them if you’re unable to?
Will or Living Trust?
A will and a trust are both legal documents used for estate planning, but they serve different purposes and operate differently. A will is a legal document that outlines how you want your assets distributed after your death. It only takes effect after you die and must go through a court process called probate to ensure that your wishes are carried out.
A trust, on the other hand, is a legal arrangement where a trustee holds and manages assets for the benefit of one or more beneficiaries. Unlike a will, a trust can take effect immediately upon its creation and can be used to manage assets both during your lifetime and after your death. Trusts can also help avoid probate, which can save time and money for your heirs.
In summary, the main difference between a will and a trust is the timing of when they take effect and how they operate. A will takes effect after you die and must go through probate, while a trust can take effect immediately and can help avoid probate.
- Who will care for your underage children?
- Who gets your home?
- Who inherits all of your bank accounts?
- Who will operate and own your business?
- Can you avoid family arguments over your belongings and keepsakes?
- Who will make your medical decisions?
- Who will get your assets?
- Who decides your healthcare or end-of-life decisions?
- How will your loved ones avoid probate?
If you don’t have a clear answer to even one of the questions above.
Please book a one on one free consultation with me to Learn more.