Commonly Asked Questions
An estate plan helps ensure your assets are distributed according to your wishes, minimizes estate taxes, avoids probate, and can provide for minor children or individuals with special needs. It also helps clarify your medical and financial decisions in case you become incapacitated.
You should include all significant assets, such as real estate, bank accounts, investments, retirement accounts, insurance policies, and personal property. Consider both tangible and intangible assets.
Probate is the legal process of validating a will and distributing assets. To avoid probate, you can use strategies such as establishing a trust, designating beneficiaries on accounts, and holding assets jointly with rights of survivorship.
A durable power of attorney is a legal document that grants someone the authority to make financial decisions on your behalf.
A healthcare proxy or medical power of attorney is a legal document that designates someone to make medical decisions on your behalf if you are unable to do so. This ensures your healthcare preferences are honored.
Dying without a will (intestate) means your assets will be distributed according to state laws, which may not align with your wishes. Additionally, this can lead to lengthy probate processes and potential disputes among family members.
A living will is a legal document that outlines your preferences for medical treatment and end-of-life care in case you become incapacitated and unable to communicate your wishes.
There are various strategies to minimize estate taxes, including gifting assets during your lifetime, establishing trusts, and utilizing tax exemptions. Consulting with an estate planning attorney can help you develop an effective tax strategy.
A special needs trust is a legal arrangement that allows you to set aside funds for the care of a person with disabilities without affecting their eligibility for government benefits.
Choose someone who is trustworthy, organized, and capable of managing financial matters. Consider their ability to handle potential family dynamics and their willingness to take on the responsibilities involved.
Yes, you can choose to disinherit someone in your will or trust. However, the laws governing disinheritance vary by state, so it’s important to work with an attorney to ensure your wishes are legally enforceable.
A pour-over will is a type of will that transfers any remaining assets not already placed in a trust into the trust upon your death. This helps ensure that all assets are managed according to the trust’s terms.
When you pass away, your debts must be settled before your assets are distributed to beneficiaries.
A living trust is a trust created during your lifetime that allows you to transfer assets into it. Upon your death, the assets are distributed to beneficiaries without going through probate.
Beneficiary designations specify who will receive certain assets (like life insurance policies or retirement accounts) upon your death. Keeping these designations updated is crucial to ensure that your assets go to your intended heirs.
Choose a guardian who shares your values and parenting philosophy, is financially responsible, and is willing to take on the responsibility. It’s important to discuss this decision with the potential guardian before naming them in your estate plan.
Making gifts can result in tax liability depending on the timing, amount, and the beneficiary of the gift.
Store your estate planning documents in a safe, accessible place, and inform trusted family members or your executor where they can be found. Consider keeping copies with your attorney or in a secure digital format.
While online services can provide basic templates, they may not address your specific needs or comply with state laws. Indeed, many of our clients have found the online services confusing and unnecessarily tedious. Estate planning is no one size fits all. It’s advisable to consult with an estate planning attorney to create a comprehensive and legally sound plan.
Marriage may automatically revoke any prior estate plans, and you may want to update your documents to reflect your new circumstances. Divorce typically requires updating your estate plan to remove an ex-spouse as a beneficiary or executor.
An irrevocable trust is a trust that cannot be altered or revoked once established. It is often used for asset protection and estate tax reduction, as assets placed in an irrevocable trust are no longer considered part of the granter’s estate.
A testamentary trust is a trust that is created through a will and comes into effect upon the death of the testator. It allows for the management and distribution of assets according to specific instructions in the will.
A family limited partnership can provide asset protection, tax advantages, and help in transferring wealth to heirs while maintaining control over the assets during your lifetime.
If a beneficiary dies before you, their share of the inheritance typically passes according to the terms outlined in your will or trust. You may need to update your estate plan to reflect these changes.
Advance directives are legal documents that outline your preferences for medical treatment and end-of-life care in the event that you cannot communicate your wishes.
Yes, you can include your wishes regarding funeral arrangements in your estate plan.
Changes in life circumstances, such as marriage, divorce, the birth of children, or changes in financial status, can render your estate plan outdated. Regularly reviewing and updating your plan is essential to ensure it reflects your current wishes.
Certain estate planning strategies, such as creating trusts or establishing business entities, can provide asset protection from creditors. It's essential to consult with an attorney to explore the best options for your situation.
If your will is lost or destroyed, it may be difficult to prove your intentions, potentially leading to intestacy laws taking effect. You may need to have a new one created that revokes the prior.
Yes, estate planning is important regardless of the size of your estate. Even a small estate can benefit from planning to ensure that your wishes are honored, your loved ones are cared for, and potential tax liabilities are minimized.
It is recommended that you review your estate plan every three to five years, or whenever you experience a major life change such as marriage, divorce, or the birth of a child. Updating your estate plan can help ensure that it continues to meet your needs and reflects your current wishes.
Yes, at Aptt Law LLC, we offer trust administration services to help clients manage their trusts and ensure that their assets are distributed according to their wishes. Our experienced attorneys can guide you through the process and help ensure that your trust is administered properly and efficiently.