As a Life & Legacy Planning attorney, I understand how important it is to have a solid plan in place for your future and your loved ones. Just like teaching requires a clear lesson plan, managing your estate benefits from having detailed and organized instructions. Here’s a straightforward guide to estate planning and how it can impact your life.
What Is an Estate?
Your estate is everything you own – your bank accounts, home, car, furniture, and more. Even if you’re not wealthy, you still have an estate. At some point, everything you own will need a new owner, and having a plan ensures it happens the way you want.
What Is an Estate Plan?
An estate plan is like a personalized lesson plan for your future. It includes legal documents that explain what will happen to your money, property, and even your care if you can’t make decisions for yourself. It can also help you appoint a guardian for minor children and specify end-of-life preferences. Without an estate plan, those decisions may fall to the courts.
Is Retirement Planning Necessary?
Yes! Retirement planning ensures you’re prepared for the future. Depending on your retirement plan, you might receive fixed payments (pension) or amounts based on investments (contribution plans). To make the most of your plan, ask these key questions:
- Will I receive payments in a lump sum or installments?
- What happens to the payments if I pass away?
- Will my spouse or children receive anything?
- Is additional paperwork required to name beneficiaries?
Understanding your retirement plan is essential to ensure it aligns with your estate planning goals.
Essential Estate Planning Documents
Once you’ve reviewed your retirement plan, it’s time to focus on your estate planning documents. Think of these as your “lesson plans” for your family, ensuring they know what to do in any situation.
1. Revocable Living Trust (RLT)
This document allows you to manage your assets during your lifetime and decide what happens after you pass. You can name yourself as the trustee (manager of your trust) and appoint someone else to step in if needed. A trust helps avoid probate (a court process) and allows you to create specific rules, such as when and how loved ones receive their inheritance.
2. Last Will and Testament
A will specifies who will inherit your assets and allows you to name a guardian for minor children. Unlike a trust, a will goes through probate, which can be time-consuming and public. If you don’t have a will, the court decides who gets your property based on state law.
3. Pour-Over Will
If you have a trust, a pour-over will serves as a backup. It ensures that any assets not already in your trust are transferred to it after your death. This still requires probate but keeps your overall estate plan intact.
4. Financial Power of Attorney
This document allows someone you trust to handle financial matters on your behalf if you’re unable to. This could include paying bills, signing checks, or managing investments.
5. Medical Power of Attorney
A medical power of attorney lets you name someone to make healthcare decisions for you if you can’t. This avoids delays and ensures your wishes are followed.
6. Advance Directive (Living Will)
An advance directive outlines your preferences for end-of-life care, such as whether you want life-support measures. It removes the guesswork for your loved ones and prevents disagreements during difficult times.
7. HIPAA Authorization
This document allows certain individuals to access your medical information. While they can’t make decisions for you, it keeps loved ones informed and can help reduce misunderstandings.
Your Next Step
Now that you know the basics, it’s time to take the next step. Let’s work together to create a comprehensive estate plan tailored to your needs.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.