Things To Know Before, During and After You Plan.
Before You Plan:
1. What are my concerns and goals?
Most people believe they plan for their children's sake and this is partially true. However, estate planning really is about you, your goals and giving you peace of mind about what worries you. Therefore, it is important for you and your spouse to discuss what your goals are, what challenges you face and what you would like to accomplish.
2. What is my family situation?
Many clients come to our office looking to protect their children's inheritance from their children and particularly, a child's spouse. Many are concerned that, when their son or daughter gets their inheritance it will be spent quickly. Others worry that with a 50% national divorce rate, their children's spouse will end up with half. Also, if you have a child with special needs, you need to be sure they inherit money in a way that will not jeopardize their government benefits. Because of all these complications, it is important to think about your family and objectively evaluate any potential problems.
3. What are my assets and where are they located?
You need to know what you have and how it is titled so your attorney can advise you on how you should proceed. The amount of assets you own will play a major role in determining whether you need estate tax planning or Medicaid planning.
4. Whom do I want to take care of my affairs when I cannot?
Parents are often reluctant to pick one of their children over others to act when they are unable. Sometimes the child that is more responsible lives in another state whereas the less reliable one lives five blocks away. Whatever the circumstances, it is important to decide whom you want to act, either separately or jointly. If you do not, the Probate Court will decide for you.
5. Is this the right time to plan?
Planning for your incapacity and death is an easy thing to put off. In fact, many more people die "intestate" in this country each year than die with a Will or Trust. Estate planning is one of those things that everybody knows they should do, and they say they will do it after they retire, or when they turn seventy, or when they have grandchildren. However, because we never know what will happen, you procrastinate at your own risk.
When Meeting the Attorney:
1. Does the attorney I am talking to know what s/he is doing?
While attorneys produce an "Invisible" product – the client cannot tell if their legal work is good or bad because the client is not his or herself an attorney – most people can tell if the attorney they are working with passes the sniff test. It is always good to check out the attorney you are working with by asking around. Also, you can see if an attorney has been disciplined in their career by going to the State Bar of Michigan's web site. http://www.michbar.org/professional/disciplinary.cfm
2. How much should this cost?
Every estate planning case is different, and depending on complexity, attorneys charge anywhere from $500-$1500 for a Will-based estate plan and $1000-$4000 for a Trust-based plan. For Medicaid plans, attorneys usually charge $4,000-$13,000, or equivalent to one or two months of living in a nursing home.
3. Are things getting done?
From beginning to completion, a Will or Trust based estate plan should take up to one month to complete. A Medicaid plan can take two months to complete. More time than that should raise concerns. If your attorney is not returning you phone calls, it is a sign he or she is procrastinating.
4. Do I understand what the attorney is doing?
If you do not understand your estate plan, it will not work for you. You should be sure that your attorney has explained everything to your satisfaction. Remember, a good attorney makes things simpler and understandable, not more complicated.
5. Have you changed you mind?
It is alright to change your mind about the particulars of your estate plan. Often, people decide they would like to change an aspect of their plan after they leave their attorney's office. You can always change your mind and nothing is set in stone until you have died or become incapacitated. Even after a Trust is signed, it is easy to make changes.
After You Sign Your Documents:
1. Is My Trust Funded?
People come to our office every week with Trusts other attorneys have drafted that are not funded. If a Trust is not funded, it is thousands of dollars of your money that has (and more that will be) wasted. We make sure people understand the importance of the funding process and how to do it. An attorney should help you with funding real property and some other assets, but because of consumer privacy, you may need to fund bank and brokerage accounts yourself.
2. What should I tell my children?
Most importantly, your children should know your wishes in regards to end-of-life care. There is nothing more heart-breaking than the situation where children who do not know their parent's wishes have to determine whether or not that parent continues to receive life sustaining treatment. Your children should also know what their responsibilities are according to your estate plan: who is your Power of Attorney and Personal Representative. Also, tell them where keep your important financial information.
3. What do I do if my spouse or I is incapacitated some day?
Medical technology has advanced to the point where we are really good at keeping people alive, even when they are incapacitated and cannot care for themselves. It is likely that each American will face incapacity sometime during their lives. Ask your attorney for advice about your particular situation and what you should talk with your family about before you become incapacitated.
4. When I die what should my family do?
After a loved one has died, there is a lot more to think about than lawyers and probate. It is not critical to get the Probate process started immediately after death. When the family is ready, they should go talk to their attorney and get advice about the next step.
5. Any changes in my health, finances or family?
When your health, finances or family change dramatically, you should have your estate plan up-dated to reflect those changes. This is particularly true if you or your spouse is diagnosed with a disease such Parkinson's, Alzheimer's or has a stroke. When anything major changes in your life, you should call your attorney and ask him or her for advice.
