If you are approaching the estate planning process for the first time, you may have a number of important questions. This area of law can be quite confusing for newcomers – and building an estate plan might seem like a daunting prospect. That being said, you do not need to become a legal scholar simply to engage in the estate planning process. Once you understand the basics behind this process, it becomes easy to move forward with confidence – whether you have a Master’s degree or you’re a hardworking tradesperson. One of the best ways to learn more about estate planning is to book a consultation with a qualified estate planning lawyer. During this meeting, you can ask any questions you might have about the process. Here are a few examples of questions you might have:
- Do I Need a Will or a Trust?
Many estate planners are not quite sure whether they need a will or a trust. These are two different estate planning tools that serve different purposes – and it is important to distinguish between them.
A will is considered the bare minimum when it comes to estate planning. Everyone needs a will – regardless of your wealth. A will is one of the easiest and most affordable legal documents you can create, and it covers the basics of inheritance, debt payments, and certain medical choices. An estate planning attorney can help you create a will within a short timeframe.
On the other hand, a trust offers an additional layer of control for estate planners. With a trust, you can enjoy a certain level of flexibility when it comes to not only who receives certain assets but how these people inherit your property. While a will is fairly limited in this regard, you can create a trust that specifically targets your unique needs and priorities. There are all kinds of different trusts – too many to list here. Examples include pet trusts, living trusts, charitable trusts, and much more. While a will only goes into effect after your passing, some trust can become active while you are still alive.
So which one do you need? Once again, everyone needs a trust. For more advanced estate planning needs, you might choose to establish a trust – but it is not necessary in the same way as a will.
- When Should I Change My Estate Plan?
You should consider changing your estate plan when you experience major life changes. For example, you might get divorced. If this is the case, you should quickly alter any wills, trusts, and other estate planning tools that mention your ex. If you leave these matters unaddressed, your ex could inherit your fortune against your wishes.
Other family changes may also cause you to change your will. For example, you may disapprove of a grandson’s choices in life – causing you to remove him from your will. You might also make certain changes to your will if your child marries the wrong person or becomes divorced. Finally, you will need to update your will if certain beneficiaries pass away before you do.
You might also consider changing your will if your financial situation changes. Perhaps you started a new family business within the past five years – and your current will does not stipulate who should gain control of the enterprise after your passing. Maybe you recently decided to invest in cryptocurrencies – and your current will does not even mention these assets. Of course, the loss or sale of certain assets might also necessitate changes to your will. After all, your beneficiaries cannot inherit assets that no longer exist.
As a general rule, some recommend that you update your will every five years – just to be on the safe side. If you are not quite sure whether you should change your will, you might consider discussing the matter further with an estate planning attorney.
- Is Estate Planning Only for Wealthy Americans?
No, estate planning is not reserved for wealthy Americans. Everyone should have some kind of estate plan in place – even if they have absolutely no assets to speak of. In fact, those who plan to pass away while in debt should consider making an estate plan to reduce financial burdens for their beneficiaries. By creating a simple estate plan, you can avoid leaving your loved ones with excessive amounts of debt. Furthermore, wills can help designate medical choices and representatives if you become incapacitated. This is useful regardless of your wealth level.
- What Happens if I Pass Away Without a Will?
If you pass away without a will, you will have died “intestate.” This means that your estate will be handled by the probate court – and your family will have no control over who gets what. Instead of controlling who receives assets, your family will be forced to watch as your fortune is divided in a completely arbitrary manner according to a set formula. Usually, this means that spouses, children, and parents inherit most of the fortune, with other valued family members receiving very little. Often, this process can cause the wrong assets to fall into the wrong hands.
- How Can I Provide for a Financially Irresponsible Beneficiary?
If you want to ensure the financial security of a loved one who struggles to manage their money, you might consider a spendthrift trust. This estate planning tool ensures that the beneficiary will always have enough money to survive – but not enough to spend excessive sums on irresponsible endeavors like gambling, pyramid schemes, or substance abuse.
Contact the Elderly Care Law Firm Today
If you have been searching for an estate planning attorney, look no further than the Elderly Care Law Firm. We have been helping estate planners understand this process for many years, and we will gladly answer any questions you might have. Estate planning should be easy and accessible for everyone – regardless of your financial status or education. With our help, you can learn more about estate planning and choose a plan that fits your unique circumstances. Get in touch today to discuss the most appropriate course of action.
