Are you considering estate planning but feel overwhelmed by too many questions, leading you to postpone the process? Would you like some clarity before navigating this process?

Over the next week we will be posting some frequently asked questions and answers to help you get started:

What is the difference between a will and a trust?

  • A will becomes effective after death, while a trust can take effect as soon as they’re signed. A will directs who receives property and appoints a legal representative to oversee the distribution process. While a trust can distribute property prior to your death. It is important to note that a trust covers only the property explicitly placed within it, whereas a will covers all property owned by the creator of the will. All wills are public record, whereas a trust generally remains private. They can overlap in what they accomplish, but one does not necessarily replace the other—you can have both.

Do I need a living trust?

  • A trust is a similar document to a will, but one advantage of a trust is that it allows your estate to pass to beneficiaries privately, without court proceedings or probate delays. It also allows you to give instruction to a chosen trustee on how you want all your assets in the trust managed during your lifetime, should you ever become incapacitated. These trusts can be revocable, which means you can make changes, or they can be irrevocable, which means you effectively give up control of assets. 

What is power of attorney (POA)?

  • Power of attorney grants legal rights to an individual of your choice, allowing them to make decisions on your behalf if you are suddenly unable to do so. By assigning someone to handle your affairs through a power of attorney, you prevent the need for the courts to appoint a representative, which can save both time and money.

What is a medical directive?

  • This question relates to the above question about POA. A medical directive provides an understanding of your health care wishes before you become unable to voice them, and a durable power of attorney allows your designee to make a decision that you can no longer make. “Durable” means the POA remains in effect if you become incapacitated.

How can you prevent family members from contesting your will?

  • A great place to start is to work with an experienced attorney who can properly execute your will so you can make arrangements that are more likely to be upheld after your death. It is also important to sit down and explain your decisions to your family, which can help diffuse any problems in advance.  

Why is it important to bring up the subject of estate planning with your family?

  • Estate planning is a vital process that allows you to address potential issues now, thereby preventing future misunderstandings and conflicts among family members. By providing clear and thoughtful instructions in your documents, you can preserve your family’s values and help ensure a family business prospers and remains in the family if that’s what you desire.
  • Recognizing that estate planning can be complex, both emotionally and legally, it is helpful to consider any aspect that most concerns or perplexes you. Many individuals begin this journey to protect and preserve their hard-earned wealth for their family and friends. Speaking with your estate planning attorney about your specific circumstances is the best way to determine the optimal course of action. Your attorney can ensure all legal documents are accurately prepared and filed in compliance with state laws.

Reach out to us today to start your estate planning journey!