Estate Planning - Who, What, Where, When, Why, and How?
The ins and outs of estate planning can be summarized by providing answers to six simple questions - who, what, where, when, why, and how. We get it - no one wants to confront their own mortality, but having a solid estate plan in place can provide clarity, comfort, and most importantly, security to your loved ones after your passing. It’s easy to put off these tough questions when you are busy living life, but you should never wait until it’s too late. In this blog post, Morgantown, WV estate planning attorney, Brianna W. McCardle, discusses the basics of estate planning.
What is an estate plan?
An estate plan is preparation for the future - it consists of legal documents that specify who will distribute your property after your death, who will care for your minor children (if any), how property and assets will be distributed. Not pleasant things to think about, but good preparation can save your family and loved ones heartache in the future. At Ardent Legal, we believe a good estate plan also includes advance directives - Medical Powers of Attorney and Living Wills - legal documents that say who will make medical decisions for you in the event that you are unable to do so yourself and specific directions about the types of medical treatment you do and do not want in the event you are terminally ill and cannot communicate your wishes. It also includes Durable Financial Powers of Attorney - a legal document that specifies who will take care of your finances and financial affairs in the event that you cannot do so yourself and what types of financial matters that person may handle on your behalf.
What can an estate plan do?
First, we believe the primary objective of good estate planning is to give you peace of mind and comfort that things will be taken care of in your absence and in the event you are unable to specify your wishes. A properly drafted estate plan speaks for you in your absence. It communicates your wishes clearly and concisely and alleviates stress for your family members and loved ones. An estate plan, when drafted correctly, can accomplish a wide variety of goals - it can provide for the distribution of your assets after your passing, name guardians for minor children, establish trusts for minor children, establish trusts for spouses, avoid and/or simply the probate process, and many other things.
Who should have an estate plan?
Most people with assets or family members should have an estate plan. Contrary to popular belief- estate planning is not just for wealthy individuals. Even developing a simple will to provide for the passing of your assets and care of your property after your death can provide your family and loved ones with clarity in your absence.
When should I create an estate plan?
As soon as possible. Every adult over the age of 18 who has assets or family members should create an estate plan. We get it - no one wants to make tough decisions about how their affairs will be handled in the event of their passing, but doing so now can save time and heartache later. Good estate planning means good preparation, and it is never too early to create an estate plan. Don’t wait until it’s too late!
I’m young and healthy - why should I create an estate plan?
This is possibly the best time to create an estate plan. It’s easy to put off creating an estate plan when you are busy with life - raising small children, working, enjoying hobbies - but life is uncertain. Taking a small step to create an estate plan can give you peace of mind and save your family and loved ones from having to make hard decisions for you. If you are young and healthy, and especially if you have young children, creating an estate plan that names guardians for your children and establishes a trust for them can give you peace of mind and security in your absence.
Why do I need an attorney to help me create an estate plan?
It’s easy to be tempted by do-it-yourself estate planning resources. They are cheap, easily accessible, and user-friendly. However, estate planning is not a one-size-fits-all exercise, which is what online estate planning resources offer. Although these services are easily accessible, they are not well-suited to individual needs or state-specific requirements. Ardent Legal’s experienced estate planning attorney, Brianna W. McCardle, can help you create a solid and affordable estate plan that fits your individual needs and goals.
How do I create an estate plan?
There are several steps to create an estate plan. Our experienced Morgantown, WV estate planning attorney can help. The basics of creating an estate plan are as follows:
1. Create an inventory of your assets and beneficiaries
The first step of creating an estate plan is to take an inventory of all of your tangible and intangible assets (think homes, land, vehicles, bank accounts, 401k, life insurance, stocks, ownership in business). You may be surprised when you start creating an inventory of your assets. You can also place values on these things if you would like to distribute them equally among your beneficiaries. Also think about how these things are held - whether individually in your name or with someone else. You also want to consider who your beneficiaries are (i.e., who are the people you want to give things to - spouse/partner, children, other family members, friends, organizations, etc.). This will then be used to create your Will, which specifies how you want your assets to be handled after your passing and who will handle the distribution of your estate.
2. Create your directives (financial and medical)
You also want to create directives - both financial and medical. Your financial directives would be contained, generally, in a Durable Financial Power of Attorney, which specifies who you want to make financial decisions on your behalf in the event you are unable to do so yourself and the types of financial affairs that person can and cannot handle on your behalf. Your medical directives consist of a Medical Power of Attorney and Living Will. These two documents usually go hand-in-hand as the Medical Power of Attorney names the individual who you want to make medical decisions for you if you are unable to do so yourself and the Living Will specifies the types of medical treatment you want and do not want in the event you are unable to communicate your wishes or are terminally ill.
3. Name an Executor/Representative/Agent that you trust
The importance of naming an individual that you trust to carry out your wishes, to handle your affairs, and to make tough decisions for you in the event you are unable to do so yourself cannot be overstated. People often want to avoid hurting loved ones’ feelings or leaving someone out when naming their representatives; however, it is more important to name someone that you know will respect your wishes and make decisions for you when you are unable to do so yourself. Think- this person will be distributing your property, acting on your behalf, handling your finances, and/or making your medical decisions when you are not here and/or are unable to do so yourself. You want it to be someone that you trust and know will respect your wishes.
4. Consult an estate planning attorney
It is important to make sure that your estate plan is drafted carefully and correctly. The documents that are contained in your estate plan will speak for you when you cannot speak for yourself. An experienced estate planning attorney can help you make sure that everything is taken care of properly and that your estate plan accounts for your estate, distributes your property according to your wishes, and clearly specifies who and how you wish for your affairs to be handled.
5. Make a plan to reassess your estate plan.
After your create and sign your estate planning documents, it is easy to lock them in the safe and never think about it again. However, it is important to make a plan to reassess your estate plan every so often (we suggest reassessment every time there is a major life event, or no later than 5 years). If you have an estate plan that has been sitting in your lock box for several years, we are happy to help you reassess and make sure it still fits your needs.
How much does an estate plan cost?
Whether you just need a simple Will or a comprehensive estate plan, at Ardent Legal, we are proud to provide affordable estate planning services to our clients. We realize the importance of planning for the future and are dedicated to providing affordable legal services to our clients to help them meet their goals. Our comprehensive estate plans (consists of Will, Living Will, Medical Power of Attorney, Durable Financial Power of Attorney, and submission to West Virginia e-Directive Registry) for individuals begin at $400. Our simple Will preparation for an individual starts at $350. Medical Power of Attorney, Living Wills, and Durable Financial Powers of Attorney for individuals start at $100. For couples, our prices are an additional $100. Of course, the prices of these plans may vary depending on the complexity of your needs and goals.
Where can I find more information?
At Ardent Legal, we love helping people to create solid estate plans. Contact us by phone at (304) 241-1055 or fill out our contact form on the web for a free initial consultation.
Ardent Legal, PLLC - dedicated, passionate, and sincere representation
Resources:
American Bar Association, Estate Planning Info & FAQs
Investopedia, Estate Planning: 16 Things to Do Before You Die
Nerd Wallet, Estate Planning: A Seven-Step Checklist
Estate Planning, What is Estate Planning?
