Estate planning is an important part of adulthood. However, many people feel that their assets are not substantial enough to proactively do estate planning. But if you own anything you have an estate, and putting a plan in place for what happens to that estate after your death is important. And we would posit that it is a non-negotiable if you have children. An estate plan allows you to plan not only for your estate and assets, but also to put a plan in place for what happens to your children (and pets) should the worst happen to you.
Atlanta is a beautiful and diverse city. Like most of the country, property values and taxes have increased over the last several years. So has the cost of living. And we know that pay increases have not always matched the cost increases. This can cause people to have to choose between different types of services and needs their family may have.
Because of this many “normal” families fail to even consider or remember estate planning, today we will discuss why it’s important to do your estate planning and how it will likely save your estate money over time.
Trusts
A Trust is a legal agreement between you, the Trust maker, and your trustee (often you) that says how your assets need to be handled. A trust becomes effective when you sign it and directs how your assets are handled and by whom. While Trusts are often viewed as something only the ultra-rich employ, this is not true. Many “average” citizens benefit from the use of a Trust. Working closely with a skilled estate planning attorney, like those at Siedentopf Law, can help you determine if a Trust is right for you. We will take many things into consideration such as your goals, your family unit, and your budget, to name a few, and help you choose the most prudent plan based on those factors.
How it can save your estate money: Trusts, when funded properly, avoid the probate process. Avoiding probate saves your estate time and money. Certain types of Trusts can also shield your assets from liability, so if you are sued they are protected. Many professionals working in fields where a lawsuit may be expected at some point in their career use these types of Trusts to protect their assets for future generations.
Wills
A Last Will and Testament is more familiar to the general public. A Will lays out what you wish to happen to your estate after your death. It tells your executor and the Court exactly what to do with your assets so that it may be carried out. Every single person needs a Will. To us, it is a non-negotiable. Having a Will in place allows you to clearly define what happens to your assets, your minor children, and even your pets. These things should never be left to the Courts or state law to decide.
How it can save you money: a Will does need to go through probate. But a clearly written Will that leaves no doubts or questions can pass through probate quickly— without disputes between beneficiaries. A Will also costs less than a Trust on the front end. Having a well written Will prevents the cost and hassle of administering an estate intestate.
Advance Directive
An Advance Directive for Healthcare in Georgia provides your medical professionals and family with clear guidelines for how you would like to be cared for should you become incapacitated. It takes the burden of hard decision making off your loved ones and allows you the agency to make these decisions yourself ahead of time— even if you’re in a coma when those decisions come into play.
How it saves your estate money: this document is not expensive and provides peace of mind. Additionally, it leaves nothing to chance. It’s unlikely your family members will fight in Court over whether or not you should receive life support if your wishes are already clear in the Advance Directive.
Guardianship
There are two types of guardianship to consider: short term guardianship during your absence or incapacity— this is called standby guardianship; and permanent guardianship for after your death.
Standby guardianship needs to be addressed in a specific Standby Guardianship directive. This will allow a friend or family member who lives close by to care for your children while you are unable to for whatever reason. We always recommend this person live within an hour or less of you. Keep in mind, this is a short term caretaker who can step in quickly if something happens and you are unavailable. This person may be the same as the person you would name for long term custody after your death, but it doesn’t have to be.
Guardianship for after your death is addressed in your Last Will and Testament. Your Will names a person, or list of people, who you desire to receive permanent custody of your child should you die while they are minors.
How this can save your estate money: guardianship is the most important element of any estate plan. Having these elements in place can prevent custody battles or disputes, or the involvement of child protective services.
Power of Attorney (POA)
A Durable Power of Attorney document allows you to name a person or people allowed to act on your behalf for business and financial decisions. You can set this person’s authority to begin immediately or it can spring into action when a certain event happens, such as incapacity.
How it can save your estate money: this person can make sure bills are paid and no late fees are incurred— even if you are unable to do so yourself.
Estate planning really is a necessity. Especially in financially tumultuous times. Having a solid plan in place can benefit your family in ways you may not fully comprehend.
Call us at (404) 736-6066 or visit our website to schedule a consultation.
