What is Estate Planning?
So what is estate planning? Estate planning is the process of providing for the care of your loved ones and disposition of property following your death or disability. Estate planning is necessary to ensure that your wishes regarding health care and property are honored during your life and that your loved ones are taken care of when you are gone.
How Does an Estate Plan Work?
The term “estate plan” actually refers to a variety of tools that are used to manage your property and provide for your loved ones after death. These tools work in combination with each other to achieve your overall goals. The most common tools are wills, trusts, life insurance, powers of attorney, and living wills. A qualified estate planner can use these tools to:
- Provide for the guardianship and financial support of your children
- Ensure that your property will be distributed how you like, with minimal legal hurdles
- Avoid the costly and time-consuming probate process by using revocable trust and survivorship accounts
- Minimize estate taxes and administrative expenses
- Provide cash for your heirs to pay estate taxes and administrative expenses through trusts and life insurance
- Dictate your decisions regarding your own health care should you become incapacitated through medical powers of attorney and living wills
Which Estate Plan Options are Right for Me?
Unfortunately, there is no one-size-fits-all estate plan. The estate plan that is right for someone else may be totally wrong for you. Furthermore, with the increasing estate tax exemptions and planned repeal and reinstatement of the estate tax, the plan that worked for some people yesterday might be disastrous today. Understanding your options is a complex undertaking, and there is no substitute for a qualified attorney. A qualified estate planning attorney will help you identify your estate planning goals and decide between potential options.
About Jeramie Fortenberry
