Estate Planning

How does it work?

An estate plan is a directive that specifies how a person’s legal, financial, and personal affairs are managed after their death or if they lose the mental capacity to do so. Many courts consider these documents legally binding when they are duly authored and overseen by experts. It can be estate planning attorneys and are unlikely to be contested by any disputing group.  

Many people write an estate plan to ensure that a significant portion of their liquid assets is passed to their family members. They also do so to protect themselves if their ability to handle their affairs is an issue. Following the below-mentioned activities to create documents such as:

 

Proxy for Medical Care

This legal document resembles a power of attorney in appearance. However, the document grants the author’s appointed person the authority to make healthcare decisions. If the author cannot do so independently, it is completed on the author’s behalf.

 

Attorney-in-Fact

Some people also make a power of attorney declaration. The mandate allows a designated person to make essential legal or financial decisions. It is completed on the author’s behalf if they cannot do so themselves.

 

Testament and Last Will

This paper sets out how a person’s final obligations are treated. In this legal document, the person appoints an executor they trust. They also believe they can carry out the associated responsibilities. Following an executor’s appointment, the author decides their legitimate heirs. It also includes how their properties should be divided. Burial orders and how specific debts are to be remitted are two examples of important instructions.

 

Trusteeship

Those who create living trusts entrust the administration of their entire estate to a trustee who executes certain delegation powers at the time of the author’s death.

We have discussed the real estate plan procedure and how an estate planning attorney helps with the entire process. It is also mentioned above what legal documents attorneys can create in estate planning. 

So now, let’s discuss what an estate planning attorney can help you with and how they create solutions for your various problems.

 

Things Estate Planning Attorney Helps With

 

 

Attorneys specializing in estate planning can help with legal tasks after the death or disability of the author. This happens when the author of the estate plan can no longer make their own decisions. The estate plan attorney helps you with the probate process. Along with the process, they can be very helpful in the below-mentioned tasks:

• They can help create your will for you and ensure that it is followed after your death.
• Also, they figure out ways to escape or reduce the estate taxes when possible.
• Help with designating your beneficiaries according to the estate plan that you have created.
• Following the legal procedures help you avoid the probate court process.
• They also help establish a durable medical power of attorney.
• The estate plan attorney takes all the appropriate measures to protect your assets. Whether during your lifetime or setting up trusts to benefit your beneficiaries after your death. 
• These attorneys also have the legal right to sue the family or loved ones of the deceased. They use the ones who try to benefit from the beneficiaries and are not mentioned in the deceased’s estate plan.  

 

Importance of the Estate Planning

Undoubtedly, an appropriate estate plan can benefit you in various ways. Although many people tend to ignore estate plans throughout their lives, it is a critical task you should complete.

According to the plan, the estate planning attorney decides how the deceased wants you to distribute the assets. Even though the person is not rich or has that many assets, they should still consider setting up a plan. You can manage your estate plan by hiring an attorney to avoid conflicts in your family. 

 

1- Helps to Protect the Beneficiary 

Even though estate planning was only limited to the rich of society previously, it is spreading through the middle class. Whether you have a single house, a beach house, or a farmhouse, you must designate your heirs to avoid injustice afterward. Therefore, by setting up a plan, you can ensure that your beneficiaries are protected and are distributed justly.

If someone dies without estate planning, their loved ones must hit court trials that might last for years and cost a lot of money. 

Moreover, many conflicts occur between siblings and family members, resulting in messes. So, you must decide who has been responsible enough to get your assets. Or how you want to divide your assets among your children or other family members. 

 

2- Ensures the Protection of Your Minor Children

It might be a terrifying thought to die young. But if you have minor/young children, you must overcome your dreadful thoughts and consult an estate planning attorney. Therefore, you should create an estate plan and appoint trustworthy guardians for your young children. This plan also helps divide assets as the children will turn eighteen years of age. 

If you die without appointing any person as your children’s guardian, the court will have to decide. The court needs to determine what person might care for your children or who is more trustworthy. So, this is a decision that you should make in your life. This will ensure the upbringing of your children in reliable hands and just division of your assets. 

 

3- Surprisingly, Decrease the Tax on Beneficiaries

Estate plans aim to ensure your loved ones don’t face any legal circumstances after death. It is essential to protect your family and do a just division of assets among them. With estate planning, you can protect your family from the Internal Revenue Service (IRS). This will help in a significant reduction in tax burdens while distributing the assets. 

You can significantly reduce the tax burden by consulting attorneys specializing in estate planning. Therefore, it is important to set up an estate plan now. Sometimes, you can eliminate all the federal and state estate and inheritance taxes. Your attorney will also come across various ways to help decrease the amount of taxes. Your beneficiaries will have to pay these taxes through proper guidance. With this plan, your heirs can pay a hefty tax to inherit the assets. 

 

4- Helps Eliminate Ugly Situations and Messes

You might have frequently heard about the family messes regarding the division of assets. People tend to kill each other in these family disputes because of the lack of proper estate planning in the hands of the breadwinner. Most of these disputes go to courts, and the trials continue for years while the family members shatter.

To avoid all kinds of ugly situations and family messes, consult an estate planning attorney and divide all your assets. Even if it is a small house, you must distribute it once you expire. So, get your plan ready before any inconvenience or dispute happens.

 

Top Estate Planning Pitfalls to Avoid 

There is no doubt that you are fascinated by the benefits of estate planning, as explained above. However, you must know that to experience these benefits. There are dos and don’ts to follow. This section will explain some mistakes you should avoid during estate planning. These may sound like common mistakes, but many people are guilty.

 

Poor Planning

This is one of the most common mistakes during estate planning. It happens when you repeatedly put off the planning process or need more time to consider all the required details. The implication is that you could expose your loved ones to many problems and complications in the future. Even your estate’s financial future is at huge risk.

The only remedy for this is taking time and planning your estate. In a situation whereby it has been planned before now, you can have it reviewed and updated.

 

Naming Only One Beneficiary

It is crucial to have two or more beneficiaries for your assets. There is no guarantee that you are going to die before your beneficiary. This is why a contingent beneficiary needs to be included. There are different places where beneficiaries are often listed. These could be:

• Savings & checking accounts
• Retirement plans
• Life insurance policies
• Last will & testament

One nightmare many people face is learning how to choose the right beneficiary. There are people you need to take into consideration like:

• Your spouse
• Your children
• Any member of your family or a friend that depends on you financially

 

Not Hiring An Attorney

With hiring the expertise of an attorney, many things can go right. An estate planning attorney has some important roles in ensuring the process is smooth and successful. For instance, such a professional will help in drafting your will. They can also assist when it comes to designating beneficiaries. If you become incapacitated, these people can make decisions on your behalf. It is, therefore, better to involve them in the process now.

 

Not Including All of Your Assets

Regarding estate planning, many people only think of houses, cars, cash, and other physical properties. Although these are assets, you must understand that the world has advanced. Today, digital assets can be in danger of missing when not included during estate planning. If you have cryptocurrencies stored somewhere, they must be included. People have lost millions of dollars due to this mistake.

 

Being Sentimental

This is another common mistake or pitfall to avoid during estate planning. You can be sentimental in many ways. For instance, it could be in choosing guardians for minors or the wrong person as executor. When any of these occurs, the instructions in your will may not be carried out as expected. It is, therefore, important that estate planning should be done without any form of bias or sentiment.

Another way to be biased is to hire a different attorney to help you. Remember that your assets are involved and must be managed in the best way possible. An experienced attorney will help out.

 

Failure To Reduce Estate Tax

Trump tax reform allows you to explore the option of tax gifting. Failure to do this can increase the tax on your estate when you are dead. It is also possible to make larger gifts of more than $15,000 when alive. This will increase the overall value of your estate.

 

Estate Planning Attorney Near me

Now that you know the importance of estate planning and how it works, it is time to search for an estate planning attorney. You can make the right decision by finding the right estate planning attorney. You can do it by reading reviews of famous attorneys in your area.  

We offer well-planned and efficient estate planning in Sacramento and other areas. We provide various legal services. Our services include estate planning, contract disputes, ownership disputes, and other legal work. Our estate planning attorney makes sure that you get good services. We assist in the process, from legal paperwork to complete protection of your will.