What is Estate Planning
This is simply the process of arranging for an orderly transfer of your assets to the people you want to receive them, it involves identifying who you want to give your assets to and when, either in your life time or at death; but sometimes done after death).
Most often than not, we look at Updated beneficiary designation forms as one Estate planning we all need where it forms on life insurance policies, 401(k) accounts and other assets will generally override any conflicting provisions within a will or trust. It’s essential to make sure all forms are checked and updated regularly, ideally on an annual basis.
Importance of Estate Planning.
An Estate Plan Protects Young Children
Nobody thinks of dying young, but if you’re the parent of small children, you need to prepare for the unthinkable. This is where the will portion of an estate plan comes in; to ensure that your children are cared for in a manner of which you approve, you’ll want to name their guardians in the event that both parents die before the kids turn 18. Without a will that names these guardians, the courts will step in to decide who will raise your children.
An Estate Plan Eliminates Family Messes
We have all heard the horror stories; someone with money dies and the war between family members begins. One sibling may think they deserve more than another, or one sibling may think they should be in charge of the finances even though they’re notorious for racking up debt. Such squabbling can get ugly and end up in court, with family members pitted against one another.
An Estate Plan Spares Heirs a Big Tax Bite
Estate planning is all about protecting your loved ones, which means in part giving them protection from the Internal Revenue Service (IRS). Essential to estate planning is transferring assets to heirs with an eye toward creating the smallest possible tax burden for them. Even just a bit of estate planning can enable couples to reduce much or even all of their federal and state estate taxes and state inheritance taxes.
Estate Planning Lawyer
Estate planning Lawyers are experienced and licensed law professionals with a thorough understanding of the state and federal laws that affect how your estate will be inventoried, valued, dispersed, and taxed after your death.
Qualities of an Estate Planning Lawyer
A general law practitioner may not have the experience and specialized knowledge to assist you with your unique family and financial situations. Look for an estate planning lawyer who:
- Devotes their practice to estate planning
- Makes you feel comfortable sharing intimate details of your life and concerns, so your estate plan doesn’t fall short of your expectations and needs.
- Is well-versed in and up-to-date with the laws of your state. Otherwise, your estate plan could be deemed invalid by the court.
What Do Estate Planning Lawyers Do
The person appointed to administer the estate may have tax or legal questions that need to be answered by a lawyer or tax professional. An experienced estate lawyer will know what to do, and help guide you through the legal process.
If you choose to create a will or trust, consulting with an estate planning lawyer experienced in estate planning is always a wise thing to do. Drafting a will or trust can be difficult and the help of a professional can be crucial. The potential tax implications and legal formalities of will and trust drafting make a lawyer’s counsel indispensable. A lawyer can explain all your options and help you understand what types of wills or trusts are right for you and your family. Once your lawyer has assisted you in drafting a will or trust-which usually follows estate planning, they may also offer to take care of your estate administration.
How Do I Choose A Lawyer?
when choosing an estate lawyer, you must consider the following:
Comfort Level
Are you comfortable telling the lawyer personal information? Does the lawyer seem interested in solving your problem?
Credentials
How long has the lawyer been in practice? Has the lawyer worked on other cases similar to yours?
Cost
How are the lawyer’s fees structured – hourly or flat fee? Can the lawyer estimate the cost of your case?
City
Is the lawyer’s office conveniently located near you?
What an Estate Planning lawyer can do for you
An estate planning lawyer will be able to help you legally determine how your assets will be managed during your lifetime and how to distribute them after your death. A good estate planning lawyer will also adjust your estate plan so that it minimizes taxes and eliminates court costs and interference. You can create a legally binding document that ensures that you have control of your finances, taxes, and medical plans.
Why hire an Estate planning attorney
“Estate” is the legal term used to define your property and money, basically, everything that belongs to you. Estate planning estate lawyer tell you different strategies you can use to transfer your belongings after you die. By planning your estate, you can maximize its value by minimizing taxes and eliminating court costs and interference. Estate planning lawyers also help you control and protect your estate during your lifetime, by writing documents that allow you to transfer property and money to children, charities, or others in a way you desire.
Get help
If you would like to learn more about the necessity of estate planning, any one of our estate planning attorneys would be happy to assist you.
