Estate planning can often seem overwhelming and confusing. To add some clarity to the process, our attorneys have compiled a list of our FAQs about estate planning in the space below. If you have further inquiries, do not hesitate to contact our office, and we will happily answer your questions.
Probate is the court-supervised process of settling an estate after death. It involves validating the will, appointing a personal representative, paying debts and taxes, and distributing what’s left. Because it’s public and can be slow and costly, many families plan ahead to keep as much of their estate out of it as possible.
This is the most common form of asset ownership between spouses. Joint tenancy (or TBE) has the advantage of avoiding probate at the death of the first spouse. However, the surviving spouse should not add the names of other relatives to their assets. Doing so may subject their assets to loss through the debts, bankruptcies, divorces and/or lawsuits of any additional joint tenants. Joint tenancy planning also may result in unnecessary death taxes on the estate of a married couple.
The document a person signs to provide for the orderly disposition of assets after death. Wills do not avoid probate. Wills have no legal authority until the willmaker dies and the original will is delivered to the Probate Court. Still, everyone with minor children needs a will. It is the only way to appoint the new “parent” of an orphaned child. Special testamentary trust provisions in a will can provide for the management and distribution of assets for your heirs. Additionally, assets can be arranged and coordinated with provisions of the testamentary trusts to avoid death taxes.
Also called an advance medical directive, a living will states your wishes about life-sustaining treatment in advance, so your family and doctors have clear guidance if you can’t speak for yourself. It’s usually paired with a healthcare power of attorney naming the person you want to make medical decisions for you.
No. A will directs the process by naming who inherits and who serves as personal representative, but it has no legal effect until it’s filed after death. Everyone with minor children still needs one, since it’s how you name a guardian. To reduce or avoid probate itself, many families add a revocable living trust and title their assets to match.
The law decides who inherits, not you. That default may not match your wishes, and it takes away your chance to name a guardian for minor children. A simple plan puts those decisions back in your hands.
If you die without even a Will (intestate), the legislature of your state has already determined who will inherit your assets and when they will inherit them. You may not agree with their plan, but roughly 70 percent of Americans currently use it.
Assets like life insurance, retirement accounts, and payable-on-death bank accounts go straight to whoever you’ve named, outside of probate and regardless of what your will says. That makes keeping them current and coordinated with your plan important. Outdated designations are one of the most common ways a good plan goes wrong.
It lets you appoint someone you trust to handle your financial and legal matters if you can’t. Without one, your family may have to ask a court to appoint a guardian, which is far more burdensome than signing the document ahead of time. Paired with a healthcare power of attorney, it covers both money and medical decisions.
A revocable living trust holds and manages your assets during your lifetime, with instructions for what happens if you’re incapacitated or pass away. You usually serve as your own trustee while you’re able, and then a successor you’ve chosen steps in, often without court involvement. It’s especially useful for anyone who owns a home or other titled assets and wants their family to skip the delay and public exposure of probate. Whether it’s right for you depends on your assets and goals.
Whether you are young or old, rich or poor, married or single, if you own titled assets such as a house and want your loved ones to avoid court interference at your death or incapacity, consider a revocable living trust. A trust allows you to bring all of your assets together under one plan.
You’ve worked hard to build a life and legacy worth protecting. Let’s make sure your wishes are honored and your loved ones are cared for. Schedule your free consultation today.
