Most of us need only basic estate planning. Those with larger estates or unique assets or situations usually need to focus not only on the basic tools, but also on integrating steps in and out of the estate planning documents.
This article is not intended to review all estate planning tools that can be helpful. Instead, it is a call to action — a call to the all-important first meeting or updating review with an Attorney who is experienced in this important area. There is indeed value in discussion, and paying a small fee for attorney consultation can pay dividends!
The basics almost always focus on Powers of Attorney, a Last Will and Testament, and the interplay between life insurance and your accounts that you wish to keep as they are, and a focus on avoiding probate court time and expense. This is fine, but still worth the attorney-client consultation. Add a few other considerations in to the mix, and the discussion may blossom into why a simple, but effective living trust, and other considerations for planning, provide advantages.
These considerations include:
> The amount of money in your estate when you pass (think: estate tax considerations, how the beneficiaries will receive the value and your desire to control how they receive your bequest);
> Issues that you may experience now (consider long-term care needs for yourself or your significant other, asset protection needs arising from your business or other activities);
> Concerns for your beneficiaries, now and later (think: beneficiary special needs due to illness, beneficiary asset protection because of judgments, divorce expected, or other concerns);
> How your traditional IRA and other plans are treated after you have passed away (consider that IRAs and other plans are protected from creditors in most cases during your life, but inherited IRAs and other plans do not afford your beneficiary the same protection after you have passed away); and
> Having real estate interests in more than one State or in another country (consider the need to possibly have a probate court case opened in more than one jurisdiction, and how trust planning or other tools can avoid this concern and expense; and consider that some countries do not recognize U.S. estate planning documents).
These are just a few of the considerations. Every person and every situation is slightly different. Creating a plan is smart planning!
Your financial planner and your accountant are important persons to offer their input. But if they are not also attorneys, then blindly following the recommendations made to you, no matter how well-intentioned, is not smart.
If you would like to have an attorney review your current documents and discuss your personal considerations and expectations, reach out to the Attorneys at Marc D Sherman & Colleagues, PC here: https://mshermanlaw.com/contact/
