what does a lawyer need to make an estate plan

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.

Full Answer

Do I need an estate plan attorney?

An estate planning attorney can guide you through the entire process, but doing it yourself is an option for the average person. What is an estate plan? An estate plan is a collection of legal documents that lays out your intentions and expectations for two general situations: Your estate is the collection of everything you own.

What should I look for when hiring an estate lawyer?

If you're working with an estate lawyer from a large law firm, it's important to know if you will work exclusively with one person. It's possible that an assistant or paralegal will serve as the point person for communications, while the actual estate attorney is harder to contact.

How much does it cost to hire an estate lawyer?

An estate lawyer may charge a few hundred dollars for a simple will, but documents for more complex situations may cost you thousands. Look for an estate lawyer that specializes in what you need, whose fees you can afford, and who you think you can work well with. What does an estate planning attorney do?

What is the best way to start estate planning?

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.

How do I prepare an estate plan?

How to create a bulletproof estate planCreating an estate plan is a lot like getting into better shape. ... Step 1: Sign a will. ... Step 2: Name beneficiaries. ... Step 3: Dodge estate taxes. ... Step 4: Leave a letter. ... Step 5: Draw up a durable power of attorney. ... Step 6: Create an advance health care directive.More items...

Which of the following is an important document needed for estate planning?

1. A Last Will and Testament. When it comes to estate planning, having a last will and testament is likely the first thing that will come to mind.

What are three elements of an estate plan?

What are the Basic Elements of an Estate Plan—at Any Age? Last Will & Testament. Your Will governs the distribution of assets which are solely in your name, through the legal process known as probate. ... Durable Power of Attorney. ... Advance Health Care Directive.

What are the components of an estate plan?

There are six important components to an estate plan.THE WILL. The first and well-known component of an estate plan is a will. ... TRUSTS. ... POWER OF ATTORNEY. ... HEALTH CARE DIRECTIVE. ... BENEFICIARY DESIGNATIONS. ... REGULAR REVIEW AND REVISION.

What are the 4 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.

What are the 5 most important estate planning documents?

5 Essential Estate Planning DocumentsLast Will and Testament. This legal document is the foundation for a successful estate plan. ... Living Trust. ... Durable Power of Attorney (POA) ... Healthcare Power of Attorney (POA) ... Living Will.

What an estate planner needs to know?

Estate planning is the process of designating who will receive your assets in the event of your death or incapacitation. Often done with guidance from an attorney, one goal is to ensure heirs and beneficiaries receive assets in a way that manages and minimizes estate taxes, gift taxes and other tax impacts.

What is the main idea of estate planning?

Estate planning ensures that all your assets – physical, financial and online – are inherited by the people to whom you want them to be transferred after your demise. The law might not take into account your personal relationships or preferences while distributing your assets if you die intestate.

What are the most important things to put in a will?

What are the Most Important Things to Put in a Will?Personal Information. This should go without saying, but your will should include basic information about you to be official. ... Last Will and Testament Verbiage. ... Property and Assets. ... Beneficiaries. ... Executor. ... Guardianship. ... Signatures.

What are the four main components of a will?

Table of ContentsTestator Information and Execution.The Executor and Their Powers.Guardianship of Dependents.Disposition of Assets.

What documents do you need for probate?

You'll need a copy of the death certificate for each of the deceased's assets (eg, each bank account, credit card, mortgage etc), so before you can start probate, you'll need to register the death.

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...•

Will preparation checklist Canada?

Wills ChecklistCash and bank accounts: where are they located, account numbers.Anything in joint tenancy/tenancy in common (is that how you want it to stay?)Life insurance policies (is a beneficiary named?)Other insurance (including from credit cards)Pension plans (is a beneficiary named?)More items...

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...•

What is a revocable trust?

What Is a Revocable Trust? A revocable trust is a trust whereby provisions can be altered or canceled dependent on the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.

Is a will necessary?

It is important to make a will because: if you die without a will, there are certain rules which dictate how the money, property or possessions should be allocated. This may not be the way that you would have wished your money and possessions to be distributed.

How many documents are needed for an estate plan?

A will is just one of those legal documents, albeit an important one. In fact, there are at least six “must have” estate planning documents you need. So, you don’t need to draft just one legal document and get it right, but several.

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

Without an estate plan, you and your estate may end up paying more in the long run in professional fees, court costs, and taxes. Using a flat rate with an attorney will be much more straightforward and to your long-term economic advantage.

Do you need a will or estate plan?

Always remember, and never forget, you don’t just need a will, you need an estate plan. While the two terms “will” and “estate plan” are often used interchangeably, this is wrong, as they are two different things. An estate plan is a set of legal documents to prepare for your death or disability.

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.

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 ...

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.

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.

You Have Young Children

If you are a parent of young children, one of your greatest concerns will be ensuring that they are taken care of in the event of your death. At the very least, you’ll want to create a will that names a personal guardian —a trusted adult to take care of your children.

You Own Your Home

If you own real estate, it’s likely to be one of your most valuable assets. Keeping your real estate out of probate can translate to significant savings in cost and time. You can go about this a few ways:

You Own Significant Assets

If the total value of your assets is well into the millions, you’ll want to consider whether your estate might be subject to federal or state estate tax. For deaths in 2020, the federal exemption amount was $11.58 million for individuals ($11.7 million for deaths in 2021); any amount over this was subject to a sizable federal tax.

Other Special Circumstances

If you have other concerns—perhaps a child with special needs, worries about potential creditors, a pet you’d like to provide for after you die, or charities you’d like to support in substantial ways while maximizing tax benefits—you’ll want to get the help of a lawyer.

What is a solid estate plan?

A solid estate plan is one of the best things you can have for yourself and your loved ones. Feeling confident that your valuable assets and prized possessions will go to the people you choose can offer you enormous peace of mind now—and you can't underestimate what a gift you will be giving later to family and friends who will not have ...

What is a living will?

Sometimes called an advance directive, a living will is a legal document that provides instructions regarding the medical care you wish to receive should you become incapacitated or seriously ill and cannot communicate your preferences yourself. You can include instructions regarding the use of life-sustaining measures such as feeding and breathing tubes.

What is a living trust?

A living trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, called a "successor trustee."

What happens if you don't have a will?

Estate planning basics start with the importance of having a last will and testament. Simply put, without a will, you will die intestate, which means the government will distribute your assets according to your state's law, which may not be how you would have liked the process to go.

Do estates owe federal taxes?

Although you've probably heard dire statements about the estate tax, the truth is that the vast majority of estates will not owe any federal estate tax. This is because only those estates worth over $5.43 million (as of 2015) are subject to federal estate taxes.

Do minors need a guardian?

This person can be the same as the physical guardian, though it doesn't have to be.

Should parents of minor children have life insurance?

Parents of minor children and homeowners, especially, should consider having life insurance policies. You may also want to look into getting life insurance if you anticipate your estate having to pay a large amount of debt or estate taxes.

What is an estate lawyer?

An estate lawyer is trained in matters related to passing on your assets after you die, and planning for situations where you can no longer care for yourself. They are experts in wills, trusts, and your local probate process. Some estate lawyers may also have specialties, like planning the succession of a business.

How to leave assets to stepchild?

To leave assets to a stepchild, stepparent, or half-sibling, consider working with an estate lawyer. Most people could benefit from working with an estate planning attorney, but it may not be necessary (and you may not want to pay for it) in many situations. On the other hand, people in certain situations may need the help ...

Can you pass on your estate if you aren't survived?

This only happens if you aren’t survived by a spouse or child, but a solid estate plan will protect your assets and allow you to pass on as much of your estate as possible. If this is your situation, you may want to look for an estate lawyer who specializes in elder law. You want to set up an irrevocable trust .

Can you pass on assets to a business partner?

You have out-of-state property or assets . Passing on assets can get tricky if they’re crossing state boundaries, since two states may have different tax codes or other legal requirements for how to transfer an asset.

Do you need a guardian if you have a special needs person?

You have immediate family members with special needs or who will require a guardian . If you provide care for anyone who has special needs or is incapacitated ( cannot care for themselves) then you probably need to appoint a guardian for them in your estate planning documents.

Can you bequeath assets to someone who isn't a citizen?

You have foreign property or assets . You’re planning to bequeath assets to someone who isn’t a citizen . You could also run into issues if you plan to name an executor who isn't a legal U.S. resident. Certain tasks, like getting a tax ID to open an estate account, may not be possible for nonresidents.

Determining the need for attorney advice

Determining the need for attorney advice Unless you have the experience to do so, and or are very confident in your ability to follow detailed instructions, you would not perform medical surgery yourself, or attempt to repair the brakes on your car.

If minors are involved

If minors are involved When minors are, (or may be) intended beneficiaries of the estate, then it is generally best to establish a trust. This is a relatively complicated estate plan, and the trust must be properly funded, in order to achieve the desired objectives.

If there are no minor beneficiaries and a Trust is not required

If there are no minor beneficiaries and a Trust is not required If probate avoidance is the primary objective, there are a number of ways to avoid probate, without the need to establish a trust. Beneficiary designations can be made for most types of assets.

Other necessary documents

Other necessary documents I strongly believe that every person should have a General Durable Power of Attorney in place. This form names someone to handle the client's affairs if he or she becomes incapacitated. It eliminates the need for probate appointment of a guardian and or conservator, and the expenses related to those positions.

The bottom line

The bottom line An attorney is a salesman, selling you their time and their expertise. A good attorney should be willing to meet with you at no charge, to give you an opportunity to determine whether or not you need the attorney's services.