What is estate planning?
Most people think of estate planning as a Last Will, but careful estate planning involves a comprehensive strategy for managing and distributing your assets and belongings both after your death and during your lifetime. It involves careful review of your finances and your individual long and short-term goals. Estate planning includes instructions for disposition of real estate, investments, savings, personal belongings, guardianship of minors as well as directions upon your incapacity. Estate plan documents can include a will, trust, advance medical directives, powers of attorney, HIPAA authorizations, and instructions for disposition of your remains after death. It may also include detailed instructions for those charged with watching over your loved ones.
Why is estate planning important?
It is estimated that $84 trillion in assets will change hands over the next generation. Thoughtful estate planning is critical in order to avoid unintended consequences in the handling of these transfers. Estate planning allows you to specify how you want your assets to be distributed, and ensure that your loved ones are taken care of according to your wishes.
When should I start estate planning?
Everyone should have an estate plan, regardless of wealth. If you have significant assets, dependents, or specific wishes for asset distribution, estate planning becomes even more important. Ownership of multiple properties or complex financial investments make early estate planning critical in minimizing estate taxes and streamlining the transfer of assets on your death. If you have underage children, you should have an estate plan in place now. I even offer a young adults package for 18+ year-olds so that parents and guardians can continue to handle medical and financial affairs for their adult aged children, especially once off to college.
Do I need an attorney for estate planning?
Online tools and templates are not appropriate for estate planning. Consulting with an estate planning attorney is always recommended. In my litigation practice, I have encountered countless situations where careless estate planning resulted in years of lawsuits and heartache for the family. Don’t fall into this trap. Ever-changing tax laws and life situations such as blended families, charitable intentions, or international assets all create wrinkles in the best laid plans. Always use an estate planning attorney to create your estate plan documents.
Contact Sullivan Estate Law today to get your estate plan in motion.