Estate Planning is a complicated legal process. Complicating settling an estate are emotions and items of significant value. We have compiled a list of frequently asked questions in an attempt to answer the most commonly asked questions by customers using our service. This is not an exhaustive list, but our expectation is that this list will grow and shrink. If we have not answered a question you have, please use the communication methods provided to ask. We will do our very best to provide an answer within 24 hours.
Q. Are the documents provided by your organization legally binding?
A. These documents are your wishes. As long as they have your signature and are notarized, they should withstand legal scrutiny.
Q. Why is Estate Planning so important ?
A. Resolving how your estate is settled is anybody’s guess but yours. Estate value will plummet to the point of causing survivors to pay out of their own pockets to satisfy the disposition.
Q. Is Probate a foregone conclusion?
A. If you have property or other significant assets, Probate will be required. Home ownership and taxation are often an issue and can require a higher authority than the executor to resolve.
Q. Trust vs. Will: What’s the Difference
A. Wills outlines how assets are distributed upon death and can appoint guardians for minor children. It’s executed through probate court, which can be a lengthy process. A trust, on the other hand, allows for the management and distribution of assets during one’s lifetime and after death, bypassing probate court. Trusts can also offer more privacy and potentially reduce estate taxes.
Q. How often can I change my Estate Plan?
A. You can change your estate plan at any time. Estate plans are flexible and can be adjusted to reflect changes in your life, such as marriage, divorce, the birth of a child, or significant changes in your financial situation. Updating your will, trusts, and other estate documents ensures that your current wishes are accurately represented.
Q. What Happens If I Die Without an Estate Plan?
A. When someone dies without an estate plan, their assets are distributed according to state intestacy laws. This process, called probate, can be lengthy and complicated. The court appoints an administrator to manage the estate, which may result in higher legal fees and longer timelines. Without specific instructions, loved ones might not receive assets as the deceased intended.
Q. What Makes Up a Well-Designed Estate Plan?
A. A well-designed estate plan includes several key components: a will to outline asset distribution, a trust to manage assets and minimize taxes, and a power of attorney to designate someone to handle financial matters if you are incapacitated. Additionally, a healthcare directive specifies your medical wishes, and beneficiary designations ensure your assets pass directly to your chosen heirs.
Q. Who Needs an Estate Plan?
A. Estate planning is beneficial for individuals of all ages and financial statuses. It’s not just for the wealthy or elderly. If you own property, have minor children, or want to make specific decisions about your healthcare and finances in case of incapacity, an estate plan is necessary. It provides a clear framework for distributing assets and addressing personal wishes, which can prevent legal complications and family disputes.
Q. How Should I Provide for my Minor Children?
A. Under the eyes of the law, a child under 18 is a minor and is neither legally qualified to care for him or herself nor is he or she legally competent to manage his or her own property. Creating an estate plan will allow you to choose a guardian to care for your child upon the event of your death or incapacity. In addition, this is a helpful way to keep the peace within families and avoid custody battles between well meaning family members. If you choose, you may also appoint a separate person to act as the guardian of the child’s property.
Q. Who Will Manage the Resolution of My Estate?
A. Choosing a responsible and trustworthy trustee is very important, as this person will act with considerable authority and minimal, if any, court supervision. You also have the option of naming multiple co-trustees if you prefer. When considering who to appoint, you should consider whether the potential trustee has sufficient time and experience to perform the job effectively. In addition, it is important to make sure that the person does not have a conflict of interest.
Frequently Asked Questions: Commitment
If you can think of many more questions to ask, you’re not alone. Frequently asked questions have a one to many relationship. These are a subset of frequently asked questions people have when taking on this process. We would love the opportunity to discuss your questions with you. Our expectation is that we will answer your questions and provide a document set consistent with your wishes. That same document set will withstand legal challenges raised when someone disagrees with your wishes on paper. We periodically update our frequently asked questions so come back and come back often.
