The Legal Ins and Outs of Estate Planning
Introduction
The term “estate planning” might seem to many like some great, nebulous concept. Something far off, perhaps, or big and unmanageable. Yet, such is not the case - while estate planning takes time, it can be easily broken down into subsections, making the process far more manageable. It still involves legal processes and jargon that is confusing to some, but with a trusted attorney by your side, the estate planning process can be a breeze!
Assets, Debts, and Beneficiaries
Estate planning requires careful forethought. It is important to begin with a goal in mind: what do you want your estate plan to accomplish? Do you want to dictate how your estate should be divided? Establish guardianship for dependents? Set up a trust? Whatever you want to do, there are certain key aspects to estate planning. Firstly, document your assets and debts. This will help you determine how much of your estate will go to beneficiaries. Next you should select those beneficiaries: who do you want to receive your assets? Typically, this is a family member, though it can be anyone you want, even a charity organization.
Representatives, Financial Agents, and Patient Advocates
The next step in estate planning is to select your Personal Representative or SuccessorTtrustee. This is the person who will be responsible for carrying out your wishes once you’ve passed on. Whether that person is a Trustee or a Representative depends on whether you are executing a trust or a will - regardless, you should choose someone competent and trustworthy. Additionally, you should select your Agent for Financial Affairs. This person, who serves as a Financial Power of Attorney, will handle your finances and expenses and vouch for you in case of an accident that leaves you unable to do so yourself. A Financial Agent can prevent your family from having to go to court to access your finances should something untoward happen to you. It can be the same person as your Personal Representative or Successor Trustee, but does not have to be. Along this same vein, you should also appoint your Patient Advocate in your Medical Power of Attorney. This is often a relative or loved one, and they make legal medical decisions on your behalf - appointing all of these people to vouch for you ensures that your family does not have to go to probate court to make decisions or access finances on your behalf.
Finalizing Your Wishes
The last major decision you must make on your estate planning journey is who will care for any dependents you have - this includes minor children. Finally, you are ready to finalize your Estate Plan. You should gather together all your important legal documents, including property deeds and titles, bank and insurance documentation, beneficiary designations, share certificates, birth or adoption certificates for children, and other documents of such a nature. Keep these together with your estate planning documents to avoid any dispute later on. Next, document your burial wishes, and finally, it’s time to draw up your estate planning documents. You will either choose a Last Will and Testament or a Living Trust - both documents have the same function. The only difference is that a Trust avoids probate court, while a will does not. Think carefully and do some research before deciding which one is right for you and your family.
Conclusion
Estate planning can seem daunting when considered as a whole, but when broken down into smaller steps, it becomes far more manageable. Remember, if you ever have any questions about estate planning, wills, or trusts, it never hurts to reach out to an attorney or other legal professional. After all, your assets are at stake, and you want to be certain that your family can handle everything as smoothly as possible when need be. No matter what stage of life you may be in, it’s never too early to start the estate planning process!
Sources:
Hills, Estate Planning Attorney Rochester, and Trust |. Rochester Law Center. “Estate Planning Michigan.” Https://Rochesterlawcenter.Com/, 18 Nov. 2020, https://rochesterlawcenter.com/estate-planning-michigan/. Accessed 26 Sept. 2023.
