Estate Planning

Estate planning is important because it allows you to:

• Ensure your assets are distributed according to your wishes.
• Minimize estate taxes and probate costs.
• Appoint guardians for minor children.
• Provide for loved ones with special needs.
• Plan for potential incapacity with powers of attorney and healthcare directives.
• Avoid family disputes by clearly outlining your intentions.

A will is a legal document that outlines how you want your assets to be distributed after your death and names an executor to oversee the process. A will is essential to ensure that your wishes are followed and to avoid intestacy laws, which dictate how your assets are distributed if you die without a will.

A trust is a legal arrangement where a trustee holds and manages assets on behalf of beneficiaries. Unlike a will, a trust can provide for asset management during your lifetime and after your death. Trusts can also help avoid probate, provide privacy, and protect assets from creditors.

Probate is the court-supervised process of validating a will, settling debts, and distributing assets to beneficiaries. It involves filing the will with the probate court, inventorying assets, paying debts and taxes, and distributing the remaining assets.

You can avoid probate by:

• Creating a revocable living trust and transferring your assets into it.
• Designating beneficiaries on retirement accounts and life insurance policies.
• Holding property jointly with rights of survivorship.
• Using payable-on-death (POD) or transfer-on-death (TOD) designations for bank accounts and securities.

You should review and update your estate plan whenever there are significant changes in your life, such as marriage, divorce, the birth of a child, the death of a beneficiary, or substantial changes in your financial situation. It's also a good practice to review your plan every few years.