why do i need an attorney to prepare estate plan

Reasons Why You Need an Attorney for Estate Planning: It saves time and energy Handing off the perplexing task of drafting a careful estate plan to a responsible expert will mitigate a massive burden on you. It’s a ton of work to compose an estate plan. You require more than a will

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Do I need a lawyer to help with estate planning?

Apr 29, 2021 · A solid estate plan can help prepare for these and other scenarios. Consult an attorney to discuss your particular circumstances. Regarding disabilities, there are specific trusts that are set up for the benefit of a beneficiary who is disabled, structured in a way that allows the beneficiary to continue to qualify for public assistance, such as Social Security Disability …

Do I need a lawyer to make a will?

Mar 29, 2019 · Adequate preparation for your first estate planning appointment will help ensure that your attorney prepares the best estate plan for you in the shortest period of time. Facing your own mortality is not an easy thing to do, and getting ready for your first estate planning appointment requires that you do just that.

What are the advantages of estate planning?

This depends on the planning the deceased person did before death—you can't affect it now. But you won't need probate if all estate assets are held in joint ownership, payable-on-death ownership, or a living trust, or if they pass through the terms of a contract (like retirement accounts or life insurance proceeds). The estate qualifies for ...

How to prepare for an estate planning appointment?

Why do people put together estate plans?

There are generally two main reasons why people put together an estate plan to protect their beneficiaries: To protect minor beneficiaries, or to protect adult beneficiaries from bad decisions, outside influences, creditor problems, and divorcing spouses. If the beneficiary is a minor, all 50 states have laws that require a guardian or conservator to be appointed to oversee the minor's needs and finances until the minor becomes a legal adult—at age 18 or 21, depending on the laws of the state where the minor lives.

Why avoid probate?

Avoid Probate. A probate is the process of validating a deceased person's will and placing a value on their assets , paying their final bills and taxes, and distributing the rest to their beneficiaries. Avoiding probate is by far the most common reason why people seek out the advice of an estate planning attorney.

Why is it important to protect assets?

Protect Assets. Asset protection planning has become a significant reason why many people, including those who already have an estate plan, are meeting with their estate planning attorney . Once you know or suspect that a lawsuit is on the horizon, it's too late to put a plan in place to protect your assets.

Who is Ebony Howard?

Ebony Howard is a certified public accountant and credentialed tax expert. She has been in the accounting, audit and tax profession for 13+ years. While there are a variety of reasons why people decide to meet with an estate planning attorney and create an estate plan, here are five of the most valuable reasons.

Can you create an estate plan for a divorced beneficiary?

Or, if the beneficiary is already an adult that's bad at managing money or has an overbearing spouse or partner who you fear will squander the beneficiary's inheritance or take it in a divorce, you can create an estate plan that will protect the beneficiary.

Why should I work with an estate planning attorney?

It can also be invaluable to work with an experienced attorney during the estate planning process due to the fact that they can provide objective advice. If at any point you are unsure what decision you should make regarding how your assets should be divided or who should be designated as a trustee for your estate, an attorney can act as a voice of reason who can help you make these difficult decisions. Having handled cases similar to yours, an estate planning attorney has the experience to guide you through this difficult process. They can also help you to inventory your assets and make sure that you make decisions regarding how all of your belongings should be distributed after your death, which can help to reduce conflict between your beneficiaries after you are gone .

How can I save money on my estate?

Overall, working with an estate planning attorney can help to save your estate money. While many people attempt DIY estate planning in the hopes of saving money, this can backfire in the long-run as your estate may end up paying more in lawyers' fees and court costs if there is a problem with your estate plan. Furthermore, if your estate plan is not drafted correctly, your estate could also be subjected to additional taxation. Working with an estate planning attorney can then help to ensure that as much of your hard-earned money as possible is passed to your heirs. Knowing the ins and outs of estate and probate law, they can help you to craft an estate plan that will keep your estate out of probate and reduce the tax burden that your estate faces after your death.

What happens if you make a mistake in your estate planning?

If you make a mistake during the estate planning process, this can also mean that your estate may have to go through probate. If your estate plan is insufficient, or its validity is called into question, then your estate will have to go to probate court before it can be settled. Probate can be a lengthy and expensive process for your loved ones, as a judge will have to oversee the process of distributing your assets. Not only can this put additional stress on your family during an already difficult time, but probate costs can diminish the portion of your assets that actually goes to your heirs. Additionally, when your estate goes through probate, your financial information becomes public record, which can compromise your family's privacy. This is why it is critical that you work with an attorney during the estate planning process, as working with an experienced estate planning attorney will give you the best chances of developing an estate plan that helps the majority of your estate to bypass the probate process. Estate planning attorneys have a great deal of experience with probate, and they can help you to develop an estate plan that shields your assets from this process.

Do it yourself estate planning?

Once you have made the decision to create an estate plan, it is important that you take time to ensure that you develop one that will meet your family's needs while honoring your wishes once you are gone . However, with the prevalence of do-it-yourself estate planning guides and tools available online, it is understandable why many people are tempted to create their own estate plan in an attempt to save money.

Is a will an estate plan?

You may think a will is all you need to create an estate plan. A will can be part of an estate plan, but a will, by itself, is not an estate plan . The contents of your will only come into effect after you pass away. An estate plan can include:

Is there such a thing as a set it and forget it estate plan?

There is no such thing as a “set it and forget it” estate plan. Wills, trusts, powers of attorney, and other legal documents aren’t something you prepare once and never revisit.

What is estate planning?

Estate planning goes beyond drafting a will. Thorough planning means accounting for all of your assets and ensuring they transfer as smoothly as possible to the people or entities you wish to receive them. Along with implementing your plan, you must make sure others know about it and understand your wishes.

What happens to your estate as you get older?

As you get older, your needs may change , such as figuring out if you need long-term care insurance and protecting your estate from a large tax bill or lengthy court processes. Professionals will also be up on changes in legislation and income or estate tax laws, which could impact your bequests. 14.

What is the importance of accounting for all of your assets and wishes?

Accounting for all of your assets and wishes will ensure your plan is executed smoothly after your death. Keeping written lists (and informing your estate administrator of the location of those lists) will make sure no assets or wishes get left out.

How old do you have to be to have a will?

Everyone over age 18 should have a will. It is the rulebook for the distribution of your assets, and it could prevent havoc among your heirs. A will can also name a guardian for your minor children, and designate who should care for your pets. You can leave assets to charitable organizations through your will, too.

How to add notes to a death list?

As you go, you may want to add notes if someone comes to mind that you'd like to have the item after your death. 2. Follow with Non-Physical Assets. Next, start adding your non-tangible assets to your list , such as things you own on paper or other entitlements that are predicated on your death.

How many copies of your estate plan should you make?

When your lists are completed, you should date and sign them and make at least three copies. The original should be given to your estate administrator (more on that person later). The second copy should be given to your spouse (if you're married) and placed in a safe deposit box. Keep the last copy for yourself in a safe place.

What to consult with a professional about a full investment and insurance plan?

While you may think that you've covered all your bases, it may be a good idea to consult with a professional on a full investment and insurance plan. And if it's been a while, you may want to revisit your plan. As you get older, your needs may change, such as figuring out if you need long-term care insurance and protecting your estate from a large tax bill or lengthy court processes. Professionals will also be up on changes in legislation and income or estate tax laws, which could impact your bequests.

Why is it important to have an estate plan?

Probate and privacy concerns. Another good reason to have an estate plan is to minimize the probate process and its expenses, delays, and loss of privacy. Among the concerns with probate are: Loss of privacy: Anyone can access information from the probate court.

What is estate planning?

An estate plan goes much further than a will. Not only does it deal with the distribution of assets and legacy wishes, but it may help you and your heirs pay substantially less in taxes, fees, and court costs.

Why is it important to learn about estate taxes?

Learning more about estate taxes in your state of residence will help you evaluate whether or not an estate plan is right for you and your family. A key advantage of an estate plan is its power to minimize the probate process and its expenses, delays, and loss of privacy.

What age do you have to be to have a conservator?

The age of majority in a given state is set by state laws; generally, the age is 18 or 21.

What is the estate tax exclusion for 2021?

Does the value of the estate exceed the estate tax exclusion? In 2021, for a legally married couple, generally each spouse would have the $11.7 million federal estate tax exclusion. At the death of the first spouse, their exclusion could be taken on by the surviving spouse, allowing the survivor to exclude $23.4 million (or more, because the surviving spouse’s exclusion will be indexed for inflation) from federal estate taxes. A thorough estate plan would also include provisions addressing what would happen in the event of a simultaneous death.

What is a financial power of attorney?

A financial power of attorney allows you to name someone to help with your financial affairs in the event that you are unable to manage them yourself.

How much can a survivor exclude from estate taxes?

At the death of the first spouse, their exclusion could be taken on by the surviving spouse, allowing the survivor to exclude $23.4 million (or more, because the surviving spouse’s exclusion will be indexed for inflation) from federal estate taxes.

What should an estate plan comply with?

Your estate plan should comply with any divorce and premarital agreements. It should also abide by the terms of any other contract you may have signed promising to leave assets to someone in your will.

How long does it take to get an estate plan signed?

If you provide your estate planning attorney with all your information on Day One, and stick to the process they lay out for you, it shouldn’t take them more than a few weeks to complete your documents and have them ready for you to sign.

What is an insurance binder?

An insurance binder is typically a one-page document that lists the owner of the policy, the policy number, and the death benefit.

Can a lawyer rely on financial planning?

Keep in mind that your lawyer will be relying on the information you provide in your financial planning and estate planning – if that information is inaccurate or incomplete, their recommendations ( and your documents) may not be appropriate.

Can an estate plan be completed without first knowing if there are provisions in a business agreement regarding the disposition of your

Your estate plan cannot be completed without first knowing if there are provisions in a business agreement regarding the disposition of your interest at death , particularly if you have partners. Trademark, patent and copyright registration certificates.

What happens if there is not enough money in an estate?

But if it looks like there won't be enough money in the estate to pay debts and taxes, get advice before you pay any creditors. State law will set out the order in which creditors get priority, and it's not always easy to figure out how to parcel out the money. The estate won't owe either state or federal estate tax.

What are the tasks that require expertise and experience?

Managing, appraising, and selling a business are all tasks that require some expertise and experience. You'll probably want expert advice. No one is fighting. If disgruntled family members want to contest the will, or are threatening a lawsuit over the will, get a lawyer's help right away.

How many states impose estate taxes?

More than 99% of estates don't owe federal estate tax, so this isn't likely to be an issue. But around 20 states now impose their own estate taxes, separate from the federal tax—and many of these states tax estates that are valued at $1 million or larger.

Is probate easier in states?

Probate is easier in states that have adopted the Uniform Probate Code (a set of laws designed to streamline probate) or have simplified their own procedures. The estate doesn't contain a business or other complicated asset.

Do you need probate if you have a trust?

But you won't need probate if all estate assets are held in joint ownership, payable-on-death ownership, or a living trust, or if they pass through the terms of a contract (like retirement accounts or life insurance proceeds). The estate qualifies for simple "small estate" procedures.

Can executors wind up estates?

Many executors decide, sometime during the process of winding up an estate, that they could use some legal advice from a lawyer who's familiar with local probate procedure . But if you're handling an estate that's straightforward and not too large, you may find that you can get by just fine without professional help.

Can you transfer property without probate?

Most or all of the deceased person's property can be transferred without probate. The best-case scenario is that you don't need to go to probate court, because assets can be transferred without it. This depends on the planning the deceased person did before death—you can't affect it now.

Key Takeaways

The Arrival of Children

Estate Size and State of Residence

Probate and Privacy Concerns

Preparation For Becoming Incapacitated

• Many people think of estate planning as a process that needs to be done to prepare for what happens when you pass away. However, a critical component of estate planning includes documentation in the event you become incapacitated. A financial power of attorney allows you to name someone to help with your financial affairs in the event that you are ...

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