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Estate Planning – The Best Gift You Can Give To Those You Love
I was at a funeral the other day and the family was lamenting the deceased’s lack of estate planning. “We don’t know if he wanted to be cremated or not. We don’t know what bills, assets or insurance policies he had, or where he kept all his important papers. We don’t know how he wanted his estate divided. We don’t know if he had a will or not. We don’t know anything. There is a huge pile of papers on his desk and more in the kitchen drawers. We’re going to have to go through every piece of paper in the house to see if it’s a bill, if it’s been paid or not, or whether it’s an asset or an insurance policy that we should file a claim against. This is a nightmare.” And it is not an uncommon nightmare for people who lose a loved one. All because the deceased did not give his loved ones the best gift he could possibly give them – estate planning.
Myth: I have lots of money, so I do not need to worry about estate planning. There will be plenty to go around.
Fact: Estate planning does not benefit you. After all, you really can’t take it with you. Estate planning benefits your spouse and your children or heirs. It is the best gift you can give them. Keep in mind, people only fight about money when there is too little or too much.
Myth: I only need to worry about estate planning if I have a lot of money.
Fact: Small estates can benefit from estate planning just as much as large estates, and single people just as much as married people with children. There is more to estate planning than how much money you are going to leave to whom.
The benefits of estate planning are:
It is not important what form of estate planning you choose. The important thing is that you find out what options are available and you make the choices, instead of the state or the courts.
An attorney experienced in estate planning can explain the pros and cons of wills versus living trusts versus irrevocable trusts. He or she can explain the other common estate planning documents such as living wills, health care powers of attorney, and durable powers of attorney. Your attorney can guide you through the maze of estate planning to arrive at what best meets your needs in your situation. Otherwise, your spouse or heirs are forced to live with the one-size-fits-all dictates of the state. And we all know that one-size-fits-all, does not.
This is not a good do-it-yourself project. State laws governing wills and trusts are specific and complicated. Little things, such as the execution of a will, can invalidate the document, if not done according to statute. Retail will kits are based on general principles of estate law; however, estate law differs from state to state. These kits do not account for these differences and should be used only in conjunction with the services of a practicing attorney admitted to the bar in the state where you live.
Contrary to popular opinion, estate planning does not have to be synonymous with expensive. Many attorneys offer fixed fees for estate planning or provide initial consultations free of charge. Shop around. You may find it is less than you would spend on gifts for all your loved ones in a year. Do not let the fear of cost frighten you away from giving your loved ones the best gift you could ever give.
Myth: I have lots of money, so I do not need to worry about estate planning. There will be plenty to go around.
Fact: Estate planning does not benefit you. After all, you really can’t take it with you. Estate planning benefits your spouse and your children or heirs. It is the best gift you can give them. Keep in mind, people only fight about money when there is too little or too much.
Myth: I only need to worry about estate planning if I have a lot of money.
Fact: Small estates can benefit from estate planning just as much as large estates, and single people just as much as married people with children. There is more to estate planning than how much money you are going to leave to whom.
The benefits of estate planning are:
- your property is divided the way you want it divided – not how the state dictates it will be divided;
- your wishes are clearly expressed – no one has to guess at how you want your final affairs handled;
- you can minimize the tax burdens on your spouse or heirs;
- you can minimize the hassles your spouse or heirs have to go through during a very trying time;
- you can avoid the time delay sometimes experienced in probate;
- you can minimize the costs of estate administration;
- you can choose your guardian, instead of having the court choose one for you;
- you can keep your estate distribution private, if that concerns you;
- you can save the expense and publicity of guardianship proceedings, if you are incapacitated;
- you can choose the guardian for your minor children instead of having the court choose one for them.
- you can choose your quality of life and exercise your right to die with dignity, instead of having the state and the doctors chose for you, or forcing your loved ones to agonize, wondering what you would want.
It is not important what form of estate planning you choose. The important thing is that you find out what options are available and you make the choices, instead of the state or the courts.
An attorney experienced in estate planning can explain the pros and cons of wills versus living trusts versus irrevocable trusts. He or she can explain the other common estate planning documents such as living wills, health care powers of attorney, and durable powers of attorney. Your attorney can guide you through the maze of estate planning to arrive at what best meets your needs in your situation. Otherwise, your spouse or heirs are forced to live with the one-size-fits-all dictates of the state. And we all know that one-size-fits-all, does not.
This is not a good do-it-yourself project. State laws governing wills and trusts are specific and complicated. Little things, such as the execution of a will, can invalidate the document, if not done according to statute. Retail will kits are based on general principles of estate law; however, estate law differs from state to state. These kits do not account for these differences and should be used only in conjunction with the services of a practicing attorney admitted to the bar in the state where you live.
Contrary to popular opinion, estate planning does not have to be synonymous with expensive. Many attorneys offer fixed fees for estate planning or provide initial consultations free of charge. Shop around. You may find it is less than you would spend on gifts for all your loved ones in a year. Do not let the fear of cost frighten you away from giving your loved ones the best gift you could ever give.