what do i need to tell my lawyer when starting estate planning

An estate will be distributed either according to the will or, by law, in the absence of a will. To plan for your estate, a lawyer needs to know about those people in your family tree because, even if you want to leave someone out, if there’s a missing piece within your will, rules of state law will take over to fill in the gap.

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Do I need an estate plan attorney?

Mar 29, 2019 · The purpose of co-owned accounts should be discussed with your lawyer from the start, so that they are properly addressed in your estate plan. Business agreements. If you own a company or have an interest in a partnership, your attorney will need to see a copy of your business agreements, including leases and buy-sell agreements.

What are the steps involved in estate planning?

To plan for your estate, a lawyer needs to know about those people in your family tree because, even if you want to leave someone out, if there’s a missing piece within your will, rules of state law will take over to fill in the gap. Children aren’t typically financially protected as spouses are, but you still need to be specific.

What documents do you need to read more about estate planning?

Be prepared when you meet with your estate planning clients - that means have all of the information that you need to discuss the matter with your client, as well as to begin your analysis, and that includes existing documents 2. Use forms to obtain information and as a reminder as to what you intend to do 3.

What should I look out for when hiring a financial lawyer?

One of the most important reasons to consult an attorney during the estate planning process is that you may not know what your estate plan should entail. While many people assume that all they need to do is create a will, this is not always the case. Depending on your unique circumstances, as well as what you are hoping to get out of your estate plan, a will may be …

What is the first step in the estate planning process?

Seven steps to basic estate planningInventory your stuff. You may think you don't have enough to justify estate planning. ... Account for your family's needs. ... Establish your directives. ... Review your beneficiaries. ... Note your state's estate tax laws. ... Weigh the value of professional help. ... Plan to reassess.Jan 11, 2022

What are the five most important estate planning documents?

It is especially important that older Americans begin this important part of planning. Five documents typically make up the estate planning lineup: Financial Power of Attorney, Medical Power of Attorney, Living Will, Will, and Living Trust.Dec 26, 2018

What are the main steps in estate planning?

The Estate Planning Process: 6 Steps to TakeCREATE AN INVENTORY OF WHAT YOU OWN AND WHAT YOU OWE. ... DEVELOP A CONTINGENCY PLAN. ... PROVIDE FOR CHILDREN AND DEPENDENTS. ... PROTECT YOUR ASSETS. ... DOCUMENT YOUR WISHES. ... APPOINT FIDUCIARIES.Mar 2, 2020

What assets should be considered when planning your estate?

Here is an estate planning checklist of items every estate plan should include:Will/trust.Durable power of attorney.Beneficiary designations.Letter of intent.Healthcare power of attorney.Guardianship designations.

What are the four must have documents?

This online program includes the tools to build your four "must-have" documents:Will.Revocable Trust.Financial Power of Attorney.Durable Power of Attorney for Healthcare.

Will preparation checklist?

A 10 point Will preparation checklistStep 1: Get down to basics. ... Step 2: Get a ballpark of your assets. ... Step 3: Get a general sense of your debts. ... Step 4: Choose a guardian. ... Step 5: Choose an executor. ... Step 6: Make a list of specific gifts. ... Step 7: Make a list of beneficiaries.More items...•Oct 13, 2020

What should be in a death folder?

Here are some examples of documentation that could be included in your in case of death file:Will.Living trust.Power of attorney.Life insurance policy.Birth certificate.Marriage license.Bank and credit card accounts.Loan documents.More items...

How much does an estate have to be worth to go to probate?

Every state has laws that spell out how much an estate would need to be worth to require the full probate process—anywhere from $10,000 to $275,000.Dec 17, 2021

What happens to a house when the owner dies without a will?

In case a male dies intestate, i.e. without making a will, his assets shall be distributed according to the Hindu Succession Act and the property is transferred to the legal heirs of the deceased. The legal heirs are further classified into two classes- class I and class II.

What assets should not be in a trust?

Assets that should not be used to fund your living trust include:Qualified retirement accounts – 401ks, IRAs, 403(b)s, qualified annuities.Health saving accounts (HSAs)Medical saving accounts (MSAs)Uniform Transfers to Minors (UTMAs)Uniform Gifts to Minors (UGMAs)Life insurance.Motor vehicles.

Should you put bank accounts in a trust?

Some of your financial assets need to be owned by your trust and others need to name your trust as the beneficiary. With your day-to-day checking and savings accounts, I always recommend that you own those accounts in the name of your trust.

What should be in a trust?

What Assets Should Go Into a Trust?Bank Accounts. You should always check with your bank before attempting to transfer an account or saving certificate. ... Corporate Stocks. ... Bonds. ... Tangible Investment Assets. ... Partnership Assets. ... Real Estate. ... Life Insurance.

What is the executor of an estate?

The executor of your estate, also called a personal representative, manages your estate through the probate process. They handle tax bills, debts you hadn’t paid off, and other matters affecting your estate. The executor also oversees the disbursement of your assets to beneficiaries.

Why do you need a trust?

In particular, a trust allows your estate to avoid probate for the assets in the trust. This can save time and money if you know that you want to pass certain assets to certain beneficiaries. Assets you move into some kinds of trust are also no longer part of your estate, which means your taxable estate is smaller.

What happens to your estate when you die?

Then, the estate goes through the probate process, where a probate court decides what happens to your assets.

What states have estate tax?

There is also an estate tax in 12 states and the District of Columbia: Connecticut. District of Columbia. Hawaii.

What is estate planning?

Your estate is the collection of everything you own — money, property, and other personal belongings. No matter how much you own, those things will need ...

How to start an estate plan?

The best way to start estate planning is to take an inventory of all your assets. Identifying these up front can save a lot of time in the future, especially if you’re working with an attorney or working on a joint plan with your spouse. Keep your list in a place where you can easily reference and update it.

Why is estate planning so daunting?

Estate planning is daunting because it requires you to plan for your own death. And while it’s very easy to ignore, a solid plan can really make things easier for you and your loved ones both before and after your death. When you create an estate plan, there are some essential things to consider.

What is the importance of accounting for all of your assets and wishes?

Accounting for all of your assets and wishes will ensure your plan is executed smoothly after your death. Keeping written lists (and informing your estate administrator of the location of those lists) will make sure no assets or wishes get left out.

How old do you have to be to have a will?

Everyone over age 18 should have a will. It is the rulebook for the distribution of your assets, and it could prevent havoc among your heirs. A will can also name a guardian for your minor children, and designate who should care for your pets. You can leave assets to charitable organizations through your will, too.

What is estate planning?

Estate planning goes beyond drafting a will. Thorough planning means accounting for all of your assets and ensuring they transfer as smoothly as possible to the people or entities you wish to receive them. Along with implementing your plan, you must make sure others know about it and understand your wishes.

How to add notes to a death list?

As you go, you may want to add notes if someone comes to mind that you'd like to have the item after your death. 2. Follow with Non-Physical Assets. Next, start adding your non-tangible assets to your list , such as things you own on paper or other entitlements that are predicated on your death.

How many copies of your estate plan should you make?

When your lists are completed, you should date and sign them and make at least three copies. The original should be given to your estate administrator (more on that person later). The second copy should be given to your spouse (if you're married) and placed in a safe deposit box. Keep the last copy for yourself in a safe place.

What happens to your estate as you get older?

As you get older, your needs may change , such as figuring out if you need long-term care insurance and protecting your estate from a large tax bill or lengthy court processes. Professionals will also be up on changes in legislation and income or estate tax laws, which could impact your bequests. 14.

What to consult with a professional about a full investment and insurance plan?

While you may think that you've covered all your bases, it may be a good idea to consult with a professional on a full investment and insurance plan. And if it's been a while, you may want to revisit your plan. As you get older, your needs may change, such as figuring out if you need long-term care insurance and protecting your estate from a large tax bill or lengthy court processes. Professionals will also be up on changes in legislation and income or estate tax laws, which could impact your bequests.

Who Are the Important People in Your Life?

This is probably the most important question an estate planning attorney will ask you. Family set up greatly affects the estate planning process. In fact, some states have laws that won’t let a person write certain relatives out of a will. Are you married? Most states protect spouses from being written out of a will.

What Do Your Finances Look Like?

Putting together a list of your finances will help your estate planning attorney make the best decisions for your financial future. Since most states have estate and gift tax laws for assets that exceeds certain amounts, you’ll need to make your attorney aware of every asset and liability to your name.

What Do You Want to Give Away?

Once you take out any spousal shares and pay off liabilities of the estate, it’s time to talk personal bequeathments. Do you want to leave a sum of money to your favorite niece? Do you want to set up a trust fund for your children? How about those heirloom pearls your mother gave you?

Do You Have Life Insurance?

Life insurance also falls under contract law as well, which means it will be distributed according to the life insurance policy. You can, however, list a trust as a beneficiary on a life insurance policy and the terms of a trust can be contained within a will.

Have You Gone Through a Divorce?

Believe it or not, this question matters. Depending on the terms of a divorce settlement agreement, your estate planning attorney will need to know if your ex-spouse has any claims to child support, alimony, retirement accounts, or life insurance proceeds.

All the Questions No One Wants to Answer

Unfortunately, estate planning means answering tough questions. Are you aware of any life-threatening illnesses? What are your wishes for after you’ve passed? If you have any specific wishes or religious requests, these are things your estate planning attorney will want to know.

Where Can You Find the Right Lawyer?

Planning out your will may seem like a tedious process, but an experienced estate lawyer can help you navigate through the ins and outs of planning for your future.

How can I save money on my estate?

Overall, working with an estate planning attorney can help to save your estate money. While many people attempt DIY estate planning in the hopes of saving money, this can backfire in the long-run as your estate may end up paying more in lawyers' fees and court costs if there is a problem with your estate plan. Furthermore, if your estate plan is not drafted correctly, your estate could also be subjected to additional taxation. Working with an estate planning attorney can then help to ensure that as much of your hard-earned money as possible is passed to your heirs. Knowing the ins and outs of estate and probate law, they can help you to craft an estate plan that will keep your estate out of probate and reduce the tax burden that your estate faces after your death.

What happens if you make a mistake in your estate planning?

If you make a mistake during the estate planning process, this can also mean that your estate may have to go through probate. If your estate plan is insufficient, or its validity is called into question, then your estate will have to go to probate court before it can be settled. Probate can be a lengthy and expensive process for your loved ones, as a judge will have to oversee the process of distributing your assets. Not only can this put additional stress on your family during an already difficult time, but probate costs can diminish the portion of your assets that actually goes to your heirs. Additionally, when your estate goes through probate, your financial information becomes public record, which can compromise your family's privacy. This is why it is critical that you work with an attorney during the estate planning process, as working with an experienced estate planning attorney will give you the best chances of developing an estate plan that helps the majority of your estate to bypass the probate process. Estate planning attorneys have a great deal of experience with probate, and they can help you to develop an estate plan that shields your assets from this process.

Why should I work with an estate planning attorney?

It can also be invaluable to work with an experienced attorney during the estate planning process due to the fact that they can provide objective advice. If at any point you are unsure what decision you should make regarding how your assets should be divided or who should be designated as a trustee for your estate, an attorney can act as a voice of reason who can help you make these difficult decisions. Having handled cases similar to yours, an estate planning attorney has the experience to guide you through this difficult process. They can also help you to inventory your assets and make sure that you make decisions regarding how all of your belongings should be distributed after your death, which can help to reduce conflict between your beneficiaries after you are gone .

Do it yourself estate planning?

Once you have made the decision to create an estate plan, it is important that you take time to ensure that you develop one that will meet your family's needs while honoring your wishes once you are gone . However, with the prevalence of do-it-yourself estate planning guides and tools available online, it is understandable why many people are tempted to create their own estate plan in an attempt to save money.

What are the most important estate planning issues?

Here is a simple list of the most important estate planning issues to consider. 1. Make a will. In a will, you state who you want to inherit your property and name a guardian to care for your young children should something happen to you and the other parent.

What happens if you hold your property in a trust?

If you hold your property in a living trust, your survivors won't have to go through probate court, a time-consuming and expensive process. 3. Make health care directives. Writing out your wishes for health care can protect you if you become unable to make medical decisions for yourself.

What is the person you name to handle your finances called?

The person you name to handle your finances is called your agent or attorney-in-fact (but doesn't have to be an attorney). 5. Protect your children's property. You should name an adult to manage any money and property your minor children may inherit from you.

What is a durable power of attorney?

With a durable power of attorney for finances, you can give a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs. The person you name to handle your finances is called your agent or attorney-in-fact (but doesn't have to be an attorney).

How much estate tax is due on death in 2017?

For deaths in 2017, the federal government will impose estate tax at your death only if your taxable estate is worth more than $5.49 million. (This exemption amount rises each year to adjust for inflation.)

Can you register your stocks and bonds upon death?

Likewise, in almost all states, you can register your stocks, bonds, or brokerage accounts to transfer to your beneficiary upon your death. 7. Consider life insurance. If you have young children or own a house, or you may owe significant debts or estate tax when you die, life insurance may be a good idea. 8.

What is the job of an executor of a will?

Your executor will be responsible for administering your assets after your death and ensuring your final wishes are met. An executor’s duties may include: Filing court papers to begin the probate process. Taking inventory of the entirety of the estate.

How does an estate planner help you?

A planner can help you to mitigate or avoid these costs, as well as avoid probate and protect your assets from your beneficiaries’ creditors. How to Find an Estate Planner.

What can a financial advisor do?

Your financial advisor can also help you find a qualified attorney to draw up your estate planning documents. Additionally, a financial advisor can help you better define your objectives before legal documents are drafted and also ensure your estate planning documents align with your goals. Bottom Line.

What happens if you don't have an estate plan?

If you don’t come up with an estate plan, your state will take control upon your incapacitation or death. If you become disabled, the court will determine how your assets will be used to care for you through a conservatorship or guardianship.

How are assets taxed?

Your assets can be taxed in two ways: estate taxesand inheritance taxes. With estate tax, the tax is taken out of the estate before it’s divided up and distributed to beneficiaries. Inheritance tax, on the other hand, is levied after the inheritance is distributed to beneficiaries. While estate tax is taken directly out of the estate, ...

What is estate planning?

Estate planning is the series of preparation tasks that dictate how your assets will be dispersed upon your incapacitation or death. Put simply, estate planning means electing heirs for your estate. Everything you own is part of your estate. That means property like real estate, in addition to cars and other valuables.

Who is responsible for paying inheritance tax?

While estate tax is taken directly out of the estate, beneficiaries are responsible for paying inheritance tax. Inheritance tax is only levied by states, but both the federal government and states may collect estate taxes. As of 2020, the federal estate tax only applies to estates worth more than $11.58 million.

Why do you need an estate planning lawyer?

An estate planning lawyer will devise a plan for your estate to spare your family the stress and cost of probate court. Probate is a time-consuming and expensive process, but a good estate plan can help you avoid it.

Can you create a will without a lawyer?

Authoring a will or creating a trust without consulting a lawyer carries serious risks. Every state has specific laws that decide what makes a will, trust, or estate plan valid. If you're not familiar with these rules, your assets could end up being distributed contrary to your wishes.