Estate Planning

An estate plan provides instructions to your loved ones following your death, or if you become disabled.

When people hear the words “estate planning,” they often think about a will. Many books and movies (particularly juicy whodunits) feature scenes where heirs assemble to see the reading of the will and find out what an older, wealthy family member may have left them. Perhaps because of these portrayals, some people think they don’t need a plan:

Planning Is For Everyone

These are some of the many misconceptions surrounding estate planning. However, everyone can benefit from a clear, decisive set of instructions that communicates your wishes, and which saves loved ones from unnecessary expenses and hassles in the future.

Benefits of a good estate plan

• Control: You’ve worked hard to achieve what you have in life. From assets such as your home and car to collectible sports cards, family jewelry and retirement funds, you likely have more than you realize. With an effective plan, you can ensure that you (and not your state) determines how all of your assets should be distributed.

• Values: By clearly communicating how and where your assets should be distributed, you can also help ensure transmission of your own personal values, such as religion and education.   

• Guardianship: If you have minor children, a plan will establish a guardian for their care.

• Funeral arrangements: Do you want a traditional funeral or cremation? A viewing or memorial? Without specific instructions, your family may not know.

• Special considerations: If you have family members with special needs, need to ensure the transfer of your business, or want to explore insurance options – such as life, disability or long-term care insurance – a good plan can cover all of this.

• Minimizes cost: Everyone’s situation and needs are different, but the one universal truth is that by developing your custom plan before you need it, you can help minimize costs from taxes, court costs and legal fees.

• Periodic updates: An estate plan is a dynamic tool that should be updated over time as your own life changes. With regularly scheduled updates, you can ensure that your plan is still accurate. And is not, for example, set to deliver assets to an ex-spouse or a family member who is now deceased.

Three main types

• Wills: These include detailed instructions on how to distribute your assets, care for any dependents and possibly care for yourself if you become disabled. While this type of document states your preferences, wills must still be validated and approved through probate court.  

• Powers of attorney: These documents give someone else the authority to make decisions for you if you become incapacitated. There are several types, including ones focused on business, finances or healthcare. Powers of attorney are a key part of elder law.

• Trusts: Like powers of attorney, a trust gives someone else the authority to handle your assets, until they are passed on to your loved ones who will inherit them. They may be created as part of a will and only activated upon your death (a testamentary trust). If they are set up as a living trust, this means that the trust retains ownership of the assets during your lifetime, which allows your heirs to avoid probate court. Trusts are typically more expensive to create and manage.

The Right Plan for the Right Budget

It doesn’t have to be expensive. With your custom estate plan, we can work together to find the sweet spot – covering your needs without breaking the budget. Good estate planning is also built for growth. Putting what you can afford in place now, with a plan to grow in the future as your needs and budget increase, can provide the right mix of preparation and cost savings.