A Beginner’s Guide To Completing Your Estate Plan
If you dread the idea of estate planning then, trust us, you are not alone. Many people avoid making proper legal arrangements for their end-of- life desires and assets for as long as possible.
While it is certainly understandable – both because there is some work required and the fact that thinking about death is unpleasant for some – this is the type of thing that should not, and need not, be procrastinated.
What is an Estate Plan?
The first step is to have a clear understanding of exactly what estate planning entails. Estate planning is simply the legal specification of your desires for the management of all of your property after your death. Estate planning also often includes provisions for your healthcare if incapacitated before death and the desired arrangements for your body after death.
These are decisions you will want to make after giving them proper thought and consideration but just deciding on a course of action is not enough. Unfortunately there are a couple legal hoops that need to be jumped through to make your end-of- life wishes legally binding and enforceable after your death. You will want to consult with a trustworthy attorney in order to arrange your estate planning but below are a few things that everyone should know about the process.
While the term “estate” might leave you inclined to think of estate planning as only necessary for the wealthy it is, in fact, not a matter of wealth at all. You don’t need to live in Wayne Manor to have what is legally considered an estate.
By legal definition, your estate is just the umbrella term for all the property and assets that you own. This extends beyond just homes, cars, and jewelry to other intangible property such as bank accounts and insurance policies. With this understanding in mind, you can see that you don’t need to be of retirement age for estate planning to make sense.
The Importance of an Estate Plan
If you own property and would like to have a say in what happens to it when you die then you will want to tackle your own estate planning sooner rather than later. Without legally binding estate planning, your end-of- life circumstances (both in terms of property and your own healthcare/burial matters) will be left to the whims of local laws, relatives, and doctors.
The Will and Trust
No two estates are the same so no two estate planning processes are the same either. In some cases the transferal of property is simple and clear and requires just a few pages of legal documentation. In most cases, however, arranging who gets what and when they will get it requires a number of different legal documents.
In addition to a declaration of what property goes to what person, you also want to consider aspects such as legal guardianship of dependent children, who will act as your agent in making decisions after your death, and how to handle any outstanding debts and taxes.
The most basic and essential document is a will but most people also find it necessary to set up a trust in order to legally arrange for a person (or people) to have the right to manage all or some of your assets upon your death without going through probate court (which is costly and time-consuming).
Trusts can be set up as revocable or irrevocable, with the former meaning that it can be amended down the road if you so desire and the latter meaning that once finalized it cannot be changed.
Wills and trusts are just two of the most crucial documents needed to properly arrange for your wishes to be carried out after your death. Depending on your circumstance, there may be other estate planning documents that you need and you will certainly want to consult with an attorney in that process.
At Cutler Riley Law, we offer free estate planning consultations for you and your family. We handle all the steps of estate planning, can help simplify the process for you, and are available to consult on any stage of the process.