Whether you are just starting to think about planning your estate or you have already made the decision to engage an estate-planning attorney, there are some critical questions you should ask. These questions will help you determine the best way to ensure that your estate is protected for your loved ones and will allow you to avoid several common estate-planning pitfalls.
Avoid Probate and Estate Taxes
Whether you’re looking for a way to provide for your surviving family members or are just concerned about your financial future, you can avoid probate and estate taxes with a few simple steps. This may seem overwhelming, but it’s pretty simple, and avoiding the process can save your loved ones a lot of headaches.
One of the easiest ways to avoid probate is to transfer property to a revocable living trust. These trusts can be set up with the help of experts like CunninghamLegal while you are alive and updated as your situation changes.
To avoid probate and estate taxes, you need to check with your estate-planning lawyer to determine if a revocable living trust is right for you. Depending on the type of asset you’re looking to transfer, you should name a beneficiary.
Charitable Remainder Trust
Whether you want to provide financial support for a family member or create a long-term income stream, consider a Charitable Remainder Trust (CRT). There are several benefits to establishing a CRT, including tax savings, charitable contributions, and asset diversification. There are two types of CRTs: Charitable Remainder Trust (CRT) and Charitable Remainder Annuity Trust (CRAT).
In the Charitable Remainder Annuity trust, the donor (or Trustee) receives annuity payments for life. These payments are based on a specified amount of money each year. The amount paid each year depends on the value of the trust. This makes CRTs ideal for older people who want a stable amount each year.
Assign a Guardian
Leaving a child behind is not something most people look forward to. However, it is essential to plan for the future. When naming a guardian for your child, you need to consider all the factors.
Age is a huge factor. Your child’s needs will change as they grow up. Your guardian must be willing to assume responsibility.
In addition to the age, your potential guardian should also be prepared to provide a lifestyle for your family. They should have a job and a stable financial situation. Create trust for your children to provide financial stability.
Draw up all Estate-Planning Documents
Getting your estate-planning documents in order can prevent costly mistakes. An estate plan is a centralized framework that includes a variety of documents, such as wills, revocable living trusts, and advanced care directives. An estate plan can help you decide who will receive your assets and liabilities. It can also guide you in medical decisions, funeral arrangements, and life insurance policies.
Depending on your assets, the documents you will need will vary. For example, if you own a home, your mortgage status will impact how much you pay in federal taxes. Also, if you have children, you should name a legal guardian. In addition, you should set up a trust fund for them.
Review your Current Plan
Whether you are married, single, have children or have a business, you can benefit from estate planning. This includes ensuring your assets are divided according to your wishes, avoiding probate, and determining insurance coverage for your assets.
It’s a good idea to review your current estate plan with an estate-planning attorney at least once a year. This will allow you to ensure your estate plan is up to date and reflects your current financial situation. Your estate plan should also contain critical legal documents such as a will, a living trust, power of attorney, and an Advance Health Care Directive.
You have an estate plan that includes all your children and grandchildren. If you have children from a previous marriage, you should also include a plan to distribute their assets.
Charge a Flat Fee instead of an Hourly Rate
Choosing an attorney to handle your estate planning is an important decision. You want to be sure that you choose someone with experience. It’s also critical to be aware of your financial obligations. Hourly rates for personal representatives can vary widely depending on experience and local court rules. An attorney may charge a flat fee for any or all of their estate planning services. The flat fee is usually calculated as a percentage of the estate’s value. Generally, a higher flat fee is reserved for larger estates. Usually, this fee is paid at the start of the attorney/client relationship.
Help you Navigate Complicated Situations.
It would help if you asked a series of questions during your consultation with an estate-planning attorney. These questions will help you understand your options and make a more informed decision about your estate. In addition, you can establish a level of comfort with your attorney, which will make the actual process go a lot smoother.
While there is no shortage of estate planning lawyers, you should choose the one licensed in your state of residence. Many attorneys offer a free 30-minute consultation, which is an excellent way to get a feel for the service you’ll receive.
The estate planning field is vast and confusing so a reasonable attorney can recommend the best approach for your particular situation. This could be as simple as recommending a will or trust, or it could be as involved as establishing a family trust.
