Are you Prepared if the Unthinkable Happend to you Today?

If you do not complete any estate planning, most, if not all of your assets will become part of your probate estate.  The court will then distribute the assets outright according to state law.  There will be no creditor protection for your beneficiaries and you will not get to choose how much each person is to receive, or even who will receive the assets.

Should you become incapacitated for any reason without estate planning, your family will have to petition the court to have someone appointed on your behalf to handle your financial affairs and make medical decisions for you.  This can be a costly, time-consuming, distracting, and public process that could lead to infighting with your family.

A will is a written instrument that outlines how your assets are to be distributed at your death. On the other hand, a trust is a written instrument that describes how your assets are to be managed once they have been funded into the trust. This covers what will happen while you are alive, if you become incapacitated, and ultimately upon your death.

No. Anyone who has survived to age eighteen and beyond has likely accumulated a few possessions that are of some monetary or sentimental value. While things like your home, car, and financial accounts are self-evident assets, that collection of superhero figurines or your iTunes library also deserve proper attention. There is no minimum asset value required to justify having a Will, especially since there are many low-cost options, including estate planning attorneys who will not charge an arm and a leg for a basic Will.

Guardians for minor children must usually be named in a will or in a separate guardian nomination document. If you fail to appoint guardians, the court will decide who raises your children. For parents of minor children, this is the most important estate planning decision you’ll ever make.

Even though it’s hard and no one can raise your children as well as you can, move forward and select the guardians you think will muddle through the best. Some people delay estate planning because they can’t make this decision. Don’t do that; your inaction puts your children at risk. And, be sure to name back-up guardians as well in case your first choice is unable to serve if the time comes.

No, but having a Will is part of the estate plan. Having a Will is smart because it puts you in charge of the disposition of your assets. A Will allows you to pick your executor, designate the guardians for your minor children, and name any individuals and charitable organizations as beneficiaries of your estate. If you were to die without a Will (i.e., intestate), the law of the state where you reside at your death would govern who receives what part of your estate, who administers your estate, and who takes care of your children. There are some situations where state law may override the provisions in your Will (e.g., a spouse’s elective share), but for the most part, you are in the driver’s seat.

However, a Will is only one tool in the estate planning toolbox. There are other vehicles that allow you to remain in control of your possessions and family’s future during life and upon death such as a trust, power of attorney, and advance health care directive. Depending on your situation, a Will alone may not be the most efficient or the most cost-effective means to achieve your goals.

Because our lives are constantly changing, you should review your estate planning every year or so.  It is important that you reach out to your estate planning attorney should any of the following happen to make sure that your plan continues to work as designed:

• Death of an individual who has been named as one of your fiduciaries;
• Death of a beneficiary;
• Birth of a family member;
• Change in job;
• Relocation to a new state; or
• The disposal or acquisition of any major asset (house, investment account, etc.).

A revocable living trust allows you to put in writing, how you would want your assets managed upon your incapacity or passing and how your assets would be distributed to your beneficiaries. A trust is generally not filed with the probate court keeping it private.

When someone passes away and they had a trust that was funded with their assets, trust administration is the process of collecting, managing, and distributing their assets in their trust according to the instructions in the trust.