If you have a well-drafted estate plan in place, you'll ensure that your estate passes to whom you want, when you want, and is carried out in the manner you've chosen. You can rest assured that your family won't have to endure the public process and costly matter of probate. The government won't be able to take what you've spent a lifetime building. But you need to be aware of the many options that exist in estate planning - and you must choose your estate planning attorney wisely. We offer a wealth of free information and free estate planning/living trust seminars for residents in and around the Ann Arbor area. Join us for a free Estate Planning Seminar in the Ann Arbor area. We want you to feel confident about the choices you make - let us be your guide on the path toward preserving your family's future
Is Estate Planning for Me?
Many people think that estate planning is just for other people. Here are some common misconceptions:
- Estate planning is just for older people. While the elderly need to do estate planning, so do those who are younger. Unfortunately, death and disability can strike at any age. Estate planning is for anyone who wants to have a smooth transition in such an event.
- Estate planning is only for people who are married. While married people benefit from estate planning, in many ways unmarried individuals need estate planning even more. Without any planning, state laws typically provide for assets to go to the spouse or children. For unmarried individuals with neither children nor an estate plan, the assets go to parents or siblings, even if that is not what is wanted.
- Estate planning is only for people who have millions of dollars. While some issues, such as estate taxes, only apply to people with considerable wealth, many of the elements of a comprehensive estate plan, such as communicating your health care wishes, providing for your well-being and that of your dependents in the event of a disability, and passing on family values and creating incentives for heirs to behave in a desired manner are issues that affect everyone. Further, estate planning can help provide divorce and creditor protection for your spouse and children.
- Estate planning is only for people with children. Estate planning is even for people without children because it helps plan to take care of you during periods of your own incapacity. So, even if you don't care who gets your things after your death, estate planning should be a priority.
- I don't need a Trust, because I have a Will. Wills have their place in estate planning. However, a Will does not avoid probate. Probate is the process to take assets which were titled in the name of the person who died and re-title them to someone else. If the assets are in a Revocable Living Trust, they can avoid the public process of probate and the potential costs and delays involved.
- I don't need to do estate planning because I am never going to die. This is the unspoken excuse we all give ourselves. Of course, we know this is illogical. One of the few certainties in this mortal life is that it has an end. Estate planning helps plan for that inevitability. But, estate planning does much more. It helps you organize your affairs so that you can get the most out of life.
Whether you are single or married, with or without children, young or elderly, estate planning can help you get the most out of life while preparing for the possibility of incapacity or death. An estate planning attorney can help you choose the plan that is right for you.
15 Common Reasons To Do Estate Planning
There are many reasons as to why people do estate planning. Medicaid planning and disability planning are just a few reasons. Here are some important concerns:
- Designate who will manage your affairs if you become disabled and when you pass away.
- Plan for Medicaid and its impact on your estate if you must go into a nursing home.
- Avoid probate, during your lifetime and when you pass away.
- Minimize the amount of tax payable by your estate at death.
- Protect children from a prior marriage if you pass away first.
- Protect assets inherited by your heirs from lawsuits, divorces and other claims.
- Impose discipline upon children (and/or grandchildren) who may not be capable or experienced in managing money.
- Provide for 'special needs' children and grandchildren.
- Insure that a specific portion of your estate actually gets to grandchildren, charities, etc.
- Protect a portion of your estate if you pass away first and your surviving spouse remarries.
- Address different needs of different children.
- Prevent or discourage challenges to your estate plan.
- Reward/encourage heirs who make smart life decisions, and prevent the depletion of your estate from those who do not make wise choices.
- Assure an education for children/grandchildren, despite what they (or their parents) dream of doing with the inheritance.
- Brady-Bunch” family estate planning: assure the step-parent doesn't spend your children's inheritance and/or provide for a spouse without sacrificing the intended legacy for children of a prior marriage.
The Complete Estate Plan
For most of our clients, we prepare the following documents as part of a complete estate plan:
- A Revocable Living Trust
- A “Pour Over” Will, which transfers assets outside the Trust at death into the Trust.
- A Certificate of Trust, which summarizes the terms of your document if third parties want to see “proof” of your Trust
- Funding Instructions, guidelines for transferring assets into the name of the Trust
- Life Insurance Summary, provides a location for you to identify all life insurance policies for your children or loved ones.
- Location Lists and Family Information, identifies where all important documents are located and lists the people to contact in the event of death
- An Estate Planning Letter, outlines our burial and funeral instructions and a place to write personal messages to your family
- Advanced Health Care Directive, authorizes the people you select to manage your health care decisions if you become incapacitated
- Property Power of Attorney, authorizes the people you select to manage your financial assets and property.
