If you have heard your friends, family, neighbors, radio hosts, and everyone else talking about the importance of an estate plan but you do not know where to begin, or if you don’t know what your estate planning options are, you’re in the right spot!
What are My Estate Planning Options?
On a basic level, an estate plan involves making a plan for what you want to happen to your “stuff” after you die. Estate planning is not just for the wealthy or the elderly. If you own a car, home, checking account, savings account, or any personal possessions, you have an estate. You should take steps to name who you want to receive those things after you die.
A good estate plan is much more than that, though. A properly done estate plan covers everything from instructions on what happens if you become disabled before you die to who should care for your minor children after your death.
Wills
A will is the cornerstone of an estate plan. It acts as a map to your personal representative, family, and friends to distribute your belongings after your death. A will, however, does not avoid probate, and therefore, any assets in your name must go through the court process before they can be distributed to your intended heirs.
A will is a must-have for all adults, but the probate process can become expensive, time-consuming, and even turn into a battle between family and friends. Therefore, in certain circumstances, a trust is a better option.
Trusts
A trust is similar to a will but is meant to hold your assets (managed by your selected trustee, which is often you during your lifetime) until your beneficiaries reach a certain age. Unlike a will, a trust does not have to “die” with you. Assets stay in your trust and are managed by your successor trustee until you wish for your beneficiaries to have access to them. Some people wait until their beneficiaries are 18 or 21 (to help pay for college or start life on the right foot) or even older. In certain circumstances, you may wish to make the age at which beneficiaries can access trust assets even higher.
A trust can avoid probate at death, provide you privacy, and can be changed by you at any time (as long as it is a revocable trust). While a living trust is more expensive up front than a will, it often saves you money in the long run because when properly executed, it does not have to go through the probate process.
Power of Attorney
A power of attorney is a document that allows someone else (“Agent”) to act on your behalf (“Principal”) if you are unable to do so. Your Agent can manage your property, finances, or medical affairs, when given the proper authority by you.
We typically create a durable power of attorney for our clients, which allows the power of attorney to remain in effect should you become disabled or incapacitated.
And More!
This post just covers a few of the important documents that can be included in your estate plan. To ensure the right documents are created on your behalf, you should contact a local attorney to discuss your unique situation. We do not believe most online services provide adequate services for most adults, and therefore, encourage you to speak with a local attorney.
Don’t Put it Off!
A lot of young people put off estate planning because they think they either do not have enough assets, enough time, or are not old enough to need one. This is a mistake! Almost every adult needs an estate plan. And most adults need an estate plan created by an attorney, not an online service. A licensed attorney will go through your unique situation with you, help determine your estate planning goals, and then create an estate plan that helps you achieve those goals.
Often, when people use a cheap online service for a will, they think they are protected and can check estate planning off their to do list. Unfortunately, these estate plans are often not complete and/or do not actually reach your intended goal.
We Offer Multiple Estate Planning Options
If you are a Florida resident living inside the state, we offer multiple estate planning options and can help you think through your needs and create an affordable estate plan for your unique situation. Contact us today!
If you’re ready to stop thinking about it and get started, you can get started right now by visiting us online here.