Estate Planning FAQs
Let’s face it, when it comes to estate planning, most people don’t like to think about the process at all. In fact, most people over the age of 30 don’t even have a will. As a society, we strive to provide for our families and loved ones while we’re here, but all too often, we leave them no plan in place to protect our hard earned wealth once we’re gone.
It’s critical for you to have a plan for when you move on. By making a well thought out estate plan, you’re ensuring that your loved ones will still be cared for. Estate planning can be confusing, however, and most people don’t know where to start. With that in mind, we’ve created this FAQ guide to ease any concerns you may have and help you start the process of estate planning.
What exactly is estate planning?
Estate planning is the process of arranging for the management of your estate both during your life and after your death. It helps minimize estate, generation skipping, and gift tax. A professional estate planner won’t just plan a will with you. Depending on your situation, they can also utilize life insurance, trusts, and pass-through entities to formulate your plan.
In addition to avoiding estate tax, your estate plan will give your assets to your intended beneficiaries, protect your estate from unwanted recipients, determine who will raise your children (when necessary), and make the process of handling your estate as easy as possible for your surviving family members once you’re gone.
If I die without a will, what happens to my estate?
All of your assets that are not passed by operation of law or beneficiary designations will be dealt with according to your state’s probate law. These probate laws vary from state to state, making it difficult to give a broad, definitive answer, however, having a will in place is the best way for you to have your assets given to the right people.
How will my property be distributed once I die?
Estate distribution happens in a variety of ways. Your property will be distributed based on the designations noted in a valid will, by beneficiary designations, state law (where a will is not present), and operation of law.
We can’t stress it enough, the best way for you to ensure your property is distributed the way you want it to be is by having a valid will.
How do I talk with my parents about their estate plan?
Talking with older family members about their estate plan can be tricky. You want to ensure you're informed of any plan they have in place without being pushy or coming across like you're battling for assets with other potential beneficiaries.
The most effective way to talk to your family about their estate plan is to be transparent and honest. Find the proper time and space to bring the conversation up. Encourage them to have a plan in place if they don’t and be helpful where you can. Communicate your thoughts without letting your feelings cloud your judgement. It’s best for families to be on the same page when it comes to estate planning; these kinds of conversations are crucial.
Be Prepared: Hire a Professional Estate Planning Attorney
No single guide can begin to scratch the surface of estate planning. In order to do the process the right way, you need to hire an experienced professional. Estate planning can be uncomfortable and confusing, but with the right help, it doesn’t have to be.
At Waters Sullivan, compassion comes first. Our goal is to provide you with empathetic, yet professional service in a comfortable environment. Protect your assets and put a plan in place to provide for your loved ones for years to come. Contact us today and schedule your consultation.