Despite COVID increasing Americans’ awareness of estate planning, only 33% of us have an estate plan. If you are a part of the vast majority that do not have a plan, there’s no better time than the present to start estate planning.
When getting started, you’ll begin to ask questions. Don’t worry; these are common, and we are going to answer some of the questions we hear the most often.
1. Do I need an estate plan if I don’t have a lot of assets?
Yes, you need an estate plan even if your estate is small. This is how you voice your wishes for the assets that you do have. Regardless of value, not having a plan in place can result in chaos. Your estate plan can address everything from cars and boats to real estate and even cash. It could also be as simple as addressing an insurance policy or company retirement plan.
2. Isn’t an estate plan just a will?
No, there is so much more to your estate plan than having a will. The will is the document that outlines what you want to have to happen to your assets. You should also have a preneed guardian designation, healthcare directive, durable power of attorney, revocable living trust, and a potential number of specialty documents.
3. Can I use an online template service?
Several online template options promise to help you create a complete estate plan with their downloadable templates. While these can be helpful for understanding estate planning and getting your documents together, they are not reliable for drafting your final estate plan. The templates are not a one-size-fits-all solution. You could easily miss an important piece of your estate plan or unintentionally dictate something that you do not want. The law also changes, so you don’t know if the template you’re using complies with the latest laws. At worst, your templates could end up being unenforceable and your estate gets dealt with according to intestate laws.
The smarter approach is to consult with an experienced attorney. It’s their job to know the law, the latest changes, and how to best apply it to your situation.
4. Can I avoid estate planning by putting my children’s names on my accounts?
Not only is this a solid estate plan, but it can actually put your assets at great risk. Once you put your children’s names on your assets, they become co-owners. If someone sues them for whatever reason, your assets are now subject to that lawsuit. Something as simple as a car accident can put everything you’ve worked for at risk. An experienced estate lawyer can explain better methods for protecting your assets and creating an estate plan.
5. What happens if I don’t do any estate planning?
When someone dies without an estate plan, the law considers this dying intestate. All of your assets will go through probate court, and the law dictates how they will be handled and dispersed. This doesn’t consider what you want to be done with your assets. The probate process can be lengthy, tying up your assets for years.
6. Do I need to update my estate plan?
Yes, you need to update your estate plan. These are not documents that you can set and forget. You should periodically check your estate planning documents to ensure you still agree with the plan you’ve put in place. You should also update your estate plan any time your asset situation changes.
Start Estate Planning Today
If you haven’t created an estate plan yet, there’s no time like the present to create one. However, if you already have an estate plan, then it’s time to consider reviewing and updating it. To get started, write out a list that outlines all of your assets. You can then use this to work with your lawyer to establish a comprehensive estate plan.
Schedule a consultation with one of our skilled estate planning attorneys can get your documents in order.
