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What You Need To Know About Estate Plans

5 October 2016 by Kenneth Pierce

No one wants to think about death, especially their own or the death of a loved one. Unfortunately, it is necessary to think about death when you're making an estate plan. An estate plan lays out all of your after-death wishes clearly so your family doesn't have to deal with messy legal situations during their time of mourning. Unfortunately, many people avoid creating an estate plan because they don't really own many assets. What they don't realize is that estate plans cover more than material assets, and because of this, everyone needs one. Before you start making plans or contacting probate attorneys, learn more about the benefits of having an estate plan.

Trusts Help Avoid Probate Court

Even if you have a written will, there's a chance that your family will still need to deal with probate court after your death. Yes, a Last Will and Testament is designed to tell your loved ones how you'd like to see your assets distributed after your death, but it doesn't just automatically happen. The instructions that you leave in your will need to be approved by a probate court judge before any of your assets are distributed.

If you don't want your family and loved ones to be required to deal with the court after your death, you should contact a trust lawyer. A trust lawyer can help you set up a revocable living trust as part of your estate plan. This way, all of your assets are placed in the revocable living trust after your death. Because your assets go directly into the trust, your family won't have the added hassle of dealing with probate court. After your death, your trust is managed by the trustee that you've appointed—typically a close family member or friend that you can trust to handle your assets as you've instructed. Your beneficiaries won't have access to the assets in the trust until they meet the qualifications that you placed in the trust. This means that a beneficiary won't be granted full access to the trust until he or she reaches a specific age, gets married, or finishes college. The stipulations are completely up to you, but stipulations like these help ensure young beneficiaries don't squander your money away. Additionally, you should talk to a trust lawyer about including a trust in your estate plan if you need to continue providing financial support for a loved one after your death. For example, you might have a sibling who is mentally ill, a spouse or parent that resides in a nursing home, or a child with special needs whose financial support would discontinue after your death—unless part of your estate plan includes a revocable living trust to continue the needed support.

Instructions for Care

Estate plans aren't only used after you die. Many estate plans include instructions for handling your medical care and needs if you were to become disabled before your death. In fact, the documentation in your estate plan will even name a legal guardian who is able to make medical and/or financial decisions on your behalf. You can choose one legal guardian for medical purposes and one for financial purposes if you want. Additionally, your estate plan details what happens to any minor children that you have after your death. If placing the children with their other natural parent isn't an option, your estate plan should list a new legal guardian for your kids.

Remember creating an estate plan and a trust is an on going process. When major life changes occur in your family, your estate plan should change too. So, even though thinking about death isn't pleasant, creating an estate plan and keeping it up to date gives you peace of mind that your family is well taken care of when you're no longer around. For more information, visit sites like http://wrightlawidaho.com/.

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