Don’t let estate planning scare you!!!
The estate planning process is a seldom taught subject. It’s easy to get overwhelmed or anxious when it comes to Wills, Trusts, and the like. However, this Halloween season, don’t get spooked when it comes to getting the documents you need set up. Every day, we’re working with clients to set up succession, inheritance, and emergency plans in place to make sure that if something happens, the right people are going to step up at the right time.
This week’s blog is just going to shine a light on the most common tools we work with each week! Give us a call if you have any questions about these types of documents:
1. Last Will & Testament
You’ve most likely heard of this one. The Last Will & Testament, commonly called a Will, is a document where a testator (the person writing the document) makes a few decisions clear: 1) Who their family members are, 2) Who will be serving as Guardian if one is needed for minor children, and 3) Who gets what in regard to inheritance. The most important thing to remember is that any assets that are passing to beneficiaries through a Will have to go through the probate process. The probate process can absolutely be spooky. It lasts for a minimum of six months, can be subject to conflict, is completely public, and contains taxes, deadlines, and often – STRESS. There are lots of ways to mitigate these issues – we always work with our clients in including those strategies in our plans.
2. Power of Attorney/Advance Medical Directive
These two important documents are two sides of the same coin. They concern the “life” side of estate planning – lots of people think the estate planning document process all has to do with a plan for after someone dies, but these documents are critically important when you are living. The Power of Attorney is the document that sets up an agent who can make financial decisions for the drafter, and the Advance Medical Directive sets up an agent who can make medical decisions. These two documents are highly customizable, so there is no cookie cutter format that can be used from client to client.
3. Revocable Living Trust
This one often gets its own blog post – the trust is such a useful tool and has some really significant benefits, but is not always right for every client. Think of a trust as an entity that the drafter creates, and once it’s created, it can own the drafter’s assets. A trust can own real estate, businesses, accounts, and even assets like Promissory Notes. Once the assets have been transferred into the trust, those assets will not need to pass through probate to ultimately be distributed to beneficiaries when the drafter passes away. Because it’s in the trust, the inheritance process can happen around the kitchen table instead of in the probate courtroom. The trust is also highly customizable, so clients can be very intentional and thoughtful with how they want their beneficiaries to inherit their assets. It’s a perfect tool for parents of children that have not reached a level of maturity to be able to handle lump sum inheritance of assets.
This process can definitely get overwhelming without a good lawyer in your corner. With Wakefield Law there to help you – there’s nothing to be scared about when working to draw up a plan that’s just right for you and your family.
If you are interested in learning more, give our office a call at 703-771-9740. As always, phone consultations are free of charge. We look forward to working with you!