Estate planning is the process of managing and distributing a person’s assets and wealth during their lifetime and after their death.
Proper estate planning can ensure that an individual’s wishes are followed and that their loved ones are taken care of in the event of their death.
However, without the help of a good attorney, estate planning can be complex and fraught with potential problems. In this article, we’ll explore five key situations where a good attorney can help in estate planning.
“A well-drafted estate plan lifts the burden of mourning loved ones of unnecessary “red tape” and financial confusion. Why not be rest assured you have set out a plan for your loved ones after you are gone, providing them peace of mind that all the details have been arranged by you personally.”
Protecting your assets is an important part of estate planning. A good attorney can help you create an asset protection plan that shields your assets from potential lawsuits or creditors. For example, they can help you set up a trust to protect your assets or create a limited liability company (LLC) to protect your business assets.
A will is a legal document that outlines how your assets will be distributed after your death. Without a will, your assets will be distributed according to state law, which may not align with your wishes. A good attorney can help you create a will that reflects your wishes and meets all legal requirements. They can also ensure that your will is properly executed, so there are no challenges to its validity.
Estate taxes can significantly reduce the value of your estate and impact how much your loved ones inherit. A good attorney can help you minimize your estate tax liability by creating trusts or other estate planning tools. For example, they can help you set up a revocable living trust, which can help you avoid probate and potentially reduce estate taxes.
One of the most critical aspects of estate planning is planning for incapacity. It’s important to have a plan in place in case you become unable to make decisions for yourself due to an accident or illness. A good attorney can help you create a durable power of attorney for healthcare, which will allow someone else to make medical decisions on your behalf. Additionally, they can help you create a durable power of attorney for finances, which will allow someone else to manage your financial affairs if you become incapacitated.
If you own a business, it’s important to have a plan in place for its succession in the event of your death. A good attorney can help you create a business succession plan that ensures your business continues to operate smoothly after your death. They can help you create a buy-sell agreement that outlines how your business will be transferred to your heirs or sold to a third party. They can also help you create a trust to hold your business assets and ensure they are distributed according to your wishes.