Who Should Have an Estate Plan?

Everyone, regardless of net worth. 

An estate plan is established to set forth your own particular wishes on how you want your estate managed and who you want to manage it while you are alive, but unable to manage it yourself, and how you want your estate divided up when you die.  An estate plan will also set forth who is to care for your children should something happen to you.  An estate plan will let you decide how you want to be buried.  And, depending on what assets you have, an estate plan may save thousands of dollars in fees and taxes upon your death, resulting in savings to your loved ones.

What Exactly is an Estate Plan?

An estate plan consists of a series of documents, some or all of which may be appropriate for your particular circumstances.  Generally, a "complete" estate plan will consist of:
  • Revocable Trust
  • Pour-Over Will
  • Power of Attorney
  • Advance Health Care Directive
  • General Assignment to the Trust
  • Funding of the Trust

There may be more or less documents in your plan, depending upon your individual needs and circumstances.

When Should I Create My Estate Plan?

The truth is, you should create an estate plan as soon as you are able.  There is the old saying, "The only things certain in life are death and taxes."  This is actually true.  Unfortunately, too many people put off putting their affairs in order because it is hard to contemplate or accept that today might be the last.  This usually leads to heartache, headache, and costly taxes and fees for your loved ones who are left behind.  With careful advanced estate planning and tax planning, you can make sure that the process of grieving your death is made easier and less costly for those you leave behind.

I Have an Estate Plan.  What’s Next?

Congratulations!  You have completed the first, and likely largest, step in seeing that your affairs are in order.  However, it is important to have your estate plan reviewed by a qualified attorney every 3 - 5 years, or whenever a major life event happens.  Major life events include, but are not limited to:

  • Marriage
  • Purchase of a Home or Other Real Estate
  • Starting or Selling a Business
  • Birth of a Child
  • Inheritance
  • Divorce
  • Severe or Permanent Injury or Illness to a Spouse or Child
  • Death of a Spouse, Child or other Beneficiary

How Much Does an Estate Plan Cost?

We are all concerned with how much something is going to cost, particularly with the recent changes in the economy.  Although a complete estate plan may cost $2,000 or more depending on your individual circumstances, the savings in the long run are well worth it. 

To compare this to the cost of Probate (the court process where one dies without a will, or with a will but not a properly funded  trust), click here.
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