FAQS

Don't let the term "estate" lead you to believe that estate planning is only for the wealthy. Your estate, no matter how modest, includes everything you own—your car, home, savings, investments, insurance, and personal belongings. Regardless of the total value, you can't take these assets with you when you pass away.

Estate planning involves making decisions about who should inherit your assets, what they should receive, and when they should receive it. A comprehensive estate plan also allows you to designate someone to make decisions on your behalf if you're unable to do so and specifies the scope of their authority.

If you have minor children, your estate plan should include the appointment of a legal guardian and a trustee to manage assets on their behalf. A well-crafted estate plan typically includes a will, living trust, medical directive, durable power of attorney, guardianship designations, and other documents tailored to your specific needs.

The care and attention you have devoted to your family and assets during your lifetime should not end upon your passing. If you neglect to plan, the state will impose a plan, which may not align with your intentions. Proper legal planning can spare your loved ones the burden of court proceedings, avoidable fees and taxes, unexpected inheritances, creditor claims, and potential family disputes.

Without a plan, your family may be forced to make critical decisions about your assets during an emotionally challenging time, often without a clear understanding of your wishes—or worse, with conflicting views. In the absence of legal documentation, these decisions may ultimately fall to the court.

Establishing the appropriate legal documents safeguards your family and assets by (1) allowing you to determine who will receive your assets and when, (2) helping to keep assets within the family and away from certain creditors or unnecessary taxation, and (3) saving your family time and effort during a difficult period.

A revocable living trust is a legal instrument that enables you to transfer ownership of your assets—such as property, investments, and bank accounts—into a trust during your lifetime. You retain the ability to modify or revoke the trust at any time, as long as you remain mentally competent.

In simpler terms, a revocable living trust allows you to maintain control of your property during your lifetime and seamlessly transfer it to your chosen beneficiaries upon your death, all while avoiding the probate process.

Individuals typically establish a living trust for the following five reasons:

1) Avoiding Probate:

Assets placed in a living trust bypass the probate process, which is a court-supervised procedure where assets are inventoried, creditors and beneficiaries are notified, and distributions are made. Probate can be time-consuming and expensive, whereas assets in a living trust can generally be accessed more quickly and with lower costs.

2) Cost Efficiency:

While creating a trust involves higher upfront costs compared to a will, it is more cost-effective in the long term. The expenses associated with probate, which are a part of settling an estate with a will, are avoided with a trust, resulting in substantial savings for your family after your passing.

3) Privacy:

A probated will becomes part of the public record, whereas a trust remains private. When a will is probated, anyone can access information about the deceased person’s assets, debts, and beneficiaries. While this may not concern the general public, it can attract unwanted attention from potential predators, especially if younger beneficiaries are involved. Many individuals prefer to keep this information private, making a living trust an attractive option.

4) Special Needs:

A trust can be tailored to provide for the needs of a beneficiary with a disability or special needs. Assets held in the trust are not considered when determining eligibility for government programs like Supplemental Security Income (SSI) and Medicaid.

5) Faster Access to Assets:

A living trust typically allows for quicker access to assets after a person’s death. This can be particularly important if there is an urgent need to access funds, complete a large transaction, or address immediate financial needs.

Selecting a guardian for your minor children in the event of your passing is undoubtedly one of the most challenging decisions you will face during the planning process. The following suggestions are intended to help you carefully evaluate your options.

It’s crucial to remember that no one will parent your children exactly as you would. Striving for a “perfect” match could result in delaying this important decision, leaving it up to the courts. This could lead to your children being raised by someone you would not have chosen, a situation that is far from ideal.

Review these suggestions, prioritize what matters most to you, and then make the best decision you can.

Consider a Broad Range of Candidates:

Guardians do not need to be immediate family members. Think beyond close relatives to include aunts, uncles, cousins, or even friends. The key factor is the potential guardian’s commitment to loving and caring for your child. Ensure that you approach this discussion with sensitivity, especially when considering candidates from both sides of the family.

Evaluate Compatibility and Personality:

Consider how potential guardians might interact with your child. Are they more outgoing or reserved? Are they affectionate or more hands-off? What are their interests—do they prefer outdoor activities like camping or urban environments? Are they more inclined towards sports or the arts? Importantly, is there already a bond between them and your child?

Consider Shared Values and Philosophies:

Many parents want to ensure that the values they hold dear will be reflected in the home of their chosen guardian. Consider the potential guardian’s views on education, work, religion, responsibility, and family. What is their overall philosophy on child-rearing? If you are unsure, have a conversation to clarify their perspectives.

Account for Longevity:

While it may be tempting to select grandparents as guardians, carefully assess their stamina and ability to care for young children or understand the needs of modern teenagers. It’s essential that your chosen guardians are capable of fulfilling their responsibilities through to your child’s adulthood and are in good health to manage the demands of parenting.

Visualize the New Arrangement:

Imagine what life would be like for your child with the guardian you are considering. Do they have the financial stability to take on this responsibility? If they have other children, how will your child fit into their family dynamic? Will your child need to relocate a significant distance? Would they need to purchase a larger home to accommodate your child?

Have a Contingency Plan:

Your first choice of guardian may not be able to accept the responsibility or may become unable to fulfill it when the time comes. It’s wise to have an alternative option prepared.

Consider Immediate Temporary Guardians:

It might take some time for out-of-area guardians to be notified and reach your minor children. Think of someone local who could temporarily take custody until the permanent guardians can assume their role.