“Everybody talks about the weather, but nobody does anything about it.” Mark Twain. Similarly, people talk about estate planning and know they should do it, but, according to an AARP survey, 60% of Americans do not even have a simple will. We are all mortal. So why don’t we plan? Two common reasons are procrastination and lack of knowledge. This article won’t do anything to cure the procrastination, but hopefully it will address any misconceptions the reader might have. Here are the top 10 things you should know about Estate Planning.
- Don’t let the state tell you how to plan. If you die without an estate plan, the state of your residence at your death gets to decide to whom your assets go and how. This is called “intestacy.” If you leave an estate plan, you get to determine to whom your assets will go, not the state.
- Don’t forget the kids. In most states you can nominate a person to be the guardian for your minor children. But, that nomination is done in your estate plan, specifically your will.
- Protect your heirs from creditors. If you leave assets outright to your children, their creditors can attach the assets just the same as if they had earned it. If you leave the assets in trust, you can protect your children from the dangers of life, like divorces, creditors, the IRS and other taxing authorities, as well as other pitfalls.
- Protect your heirs from themselves. Depending upon your wishes, you can even put the assets in a trust to protect them from the beneficiary himself or herself. Perhaps your son is really bad with money. A trust appointing someone else to make decisions can allow the money to be used for him. This way, you can protect your son from his own decision-making.
- Non-traditional families require special care. It is even more important for non-traditional families to do estate planning. State laws were written with traditional families in mind. For example, a couple has been together for years and would want their assets to go to each other. If they are unmarried and have no estate plans, their blood relatives would get their assets rather than each other.
- Don’t forget charity. Consider helping the charity of your choice rather than remote heirs you are not close to or you may have never met.
- You can accomplish more if you start early. In Estate Planning, timing is important. Doing an estate plan right before you die is not just as good as doing it years in advance. By starting early, options are available that may not be available in later life.
- Carefully choose an Estate Planning attorney to prepare your estate plan. Estate Planning can be a complex area. Make sure you consult with an experienced Estate Planning attorney to prepare your estate plan.
- Update your Estate Plan at regular intervals. Life is change. As time passes, inevitably, so do our lives. Our family, our assets, and other small changes happen over time. Changes which may seem unimportant to you may have significant impact on your Estate Plan.
Armed with this list, you should be ready to face the world, and prepare an Estate Plan
Compliments of the McGee Law Firm, Attorney Brandon McGee
Written By: The American Academy of Estate Planning Attorneys
Brandon McGee enjoys a successful law practice focusing on estate planning, elder law, Medicaid preplanning and crisis planning, and probate. Brandon and his team combine legal skills with compassion and understanding to develop estate plans that are personalized to the needs of each of their clients.
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