Do I Need an Estate Plan?
Everyone has one. An estate plan is simply what happens to management and distribution of assets if a disability or death occurs. The State has a plan for you. The question is, are you comfortable with accepting the State plan to control what you've worked a lifetime to create? If not, you have the right to put a plan into place that more specifically designates your specific needs and desires.
Do you know what would happen to your assets if you were gone tomorrow? Many people aren't sure or are inaccurate. Due to the impact of titling, beneficiary designations and legal documents, the overall plan of distribution is not always clear. When Cowles Law drafts your estate plan, we review titling, beneficiary designations and existing documents based on information from you, so we can make certain your new or existing estate plan considers all assets and the overall intended result is achieved.
Here are a few questions that, if answered 'yes', may indicate that completing an estate plan would be of benefit to you.
• Are you unsure of exactly how title to each of your assets is held? Titling impacts control during lifetime as well as eventual distribution. Consideration of titling and beneficiary designations is imperative for a complete estate plan that applies your wishes to all assets.
• Would you like to avoid probate of your estate?
• Are you unsure of how taxes would impact your estate?
• Do you own any asset that has substantially increased in value since you originally acquired it?
• Would you like to provide legal authority for the person of your choice to take over management of assets if you became incapacitated?
• Do you have minor children or other people who are dependent on you? If you were not able to provide for them, would dependents be in financial trouble?
• Do you have children who are not children of your current marriage?
• Do you own any property in joint tenancy or tenancy by the entirety or as tenants in common?
• Do you own assets in your sole name? This may unnecessarily require probate of your estate, increasing administration fees and delay in distribution of assets to beneficiaries of your choice.
• If your current plan of distribution was followed, would assets have to be sold so heirs and expenses could be paid?
• Are any members of your family unsure about their economic future in a family business?
• Do you own real estate in more than one state? If so, unless planning is done, probate may be required in multiple states.
• Do you own property which you would not want to have sold to non-family members?
• Have you or do you intend to make any gifts during lifetime?
• Do any potential family disputes over your estate exist?
• Do you have concerns over any beneficiary's ability to manage assets on their own?
• Are you concerned about the effects of a widowed spouse's remarriage on the children's or others' inheritance?
• If a death or incapacity occurred and court approval was required to release money from accounts, could it disrupt your family, your farm or other business?
• Does your plan of distribution leave less than 50% of your estate to your spouse? Unless agreements are in place, your spouse may have rights to half of all of your assets, and even if s/he wants to respect your inheritance, that legal right may have tax implications.
• Will you take the time to monitor state law so you're aware if changes could impact you? One of the challenges with depending on state statute is that, when law changes, you're not sent a notice. If you sign estate planning documents that include your particular desires, in most cases those provisions will override statutory law. You can consider what you want to have happen, and can then review those documents periodically to make sure they still reflect your desires.
• Are you uncertain about who is named as beneficiary on any asset? Is a contingent, as well as a primary beneficiary named? Is your estate named as beneficiary on anything? Using beneficiary designations can be an appropriate method of avoiding probate on your estate and distributing assets to named beneficiaries, but if your estate is named, probate will be required. Probate will also be required if the primary beneficiary does not survive or for any other reason, cannot accept the asset. Using trusts, the full picture can be considered, and the plan of distribution can be designed to ensure accurate distributions to beneficiaries of your choice, and to avoid probate administrative costs and delays.
Most people put estate plans into place as a financial decision, to minimize costs. This is a good reason to do any estate plan, but the GREATEST benefit of a comprehensive estate plan is giving the family the gift of smooth transition, keeping family relationships positive, and minimizing stress for loved ones at a very stressful time of life.
UPON RECEIPT OF INFORMATION, WE WILL CONTACT YOU IN REGARD TO A COMPLIMENTARY CONSULTATION.