| Estate Planning FAQs |
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What is an estate plan??
A core estate plan typically consists of a Will or Revocable Trust, a Power of Attorney and a Health Care Directive. All clients start with these basic building blocks. Depending upon the size and complexity of your estate, your estate plan may also include other documents, such as a Trust to Own Life Insurance.
Who needs an estate plan?
1. Anyone who wants to direct where their assets go at their death. If you die without a Will and you have a spouse and children, your spouse does not necessarily receive all of your assets. 2. Anyone who wants to select the agents who will act for him or her - i.e., the Personal Representative and/or Trustees, and the Guardians for minor children. 3. Anyone in a non-traditional relationship. 4. Anyone with minor children. Not only are you able to name guardians for your minor children, but you can also include trust provisions so that the children do not receive all of your assets at age 18. 5. Anyone who owns a business. You want to make sure that you have a smooth transition of the business ownership when you die. 6. Anyone who has a taxable estate for state or federal purposes. Without the proper planning in the documents, you may lose some or all of your tax exemptions. 7. Anyone who is not a U.S. citizen or has a non-citizen spouse. 8. Anyone who owns property in multiple states. 9. Anyone who wants to avoid costly court proceedings to have a guardian appointed in the event of disability. What do I need to bring to the meeting?
It is helpful for an estate planning attorney to have a full picture of your family members and asset information. A net worth statement is helpful, as are copies of account statements and deeds to real property. The estate planning attorney will want to know how all of the assets are titled - are they in one spouse's name, are they joint, or are they owned by a company, etc.
How long does it take to set up an estate plan?
Typically, the first meeting takes about an hour. At that meeting, we discuss your family, how you want the various members to receive assets (outright or in a trust), the best planning for the type of assets that you have, and the tax ramifications of your estate based upon the size of the estate and the nature of the assets. After the first meeting, documents are prepared by the attorney. You will review them and make changes as needed. Then there is a final appointment to sign the documents. The entire process can be completed in under a month if the client is motivated.
I have completed my estate plan. Now what?
It is a good idea to review your estate plan every few years to determine if it still makes sense given your situation. As families change through marriage or divorce, birth of children and children attaining adulthood, your estate plan may also need to change to fit the new facts. This is also the case if your financial situation changes significantly. At any of these times, it is a good idea to review your documents. The changes may entail a small amendment to your plan or, in some cases, the plan may need a more detailed overhaul.
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Family Affairs
Jonathan Fogel is the host of Family Affairs on FM107, a show on the issues that face divorcing couples. Click here for recent recordings and more information.
