Is it real estate? NO! That’s a different topic.. like house sales and stuff… and I’m not even sure what real estate attorneys do (and I’m an attorney myself). Estate planning also is NOT some mystical magic term for something only the super-rich or really old do with their money.

Estate planning is death and incapacity planning so that you know what will happen to your assets and your family if something ever happens to you. Some common estate planning documents you may have heard of are wills and trusts, powers of attorney, health care directives and much more. Rich or not, everyone has an estate. Some people’s estates are small, while other people have estates in the millions. But if you’re living... you have an estate. I like to think of an estate as similar to your net worth... rich people have big ones while some people are in negative. Either way, you have a net worth in the same way you have an estate.

What’s in an estate plan?

An estate plan often contains a series of documents that tell us and the world what you want to happen to your stuff and your people if you die or become incapacitated for some period of time. These are traditional documents like wills, trust, powers of attorney and more.

But a true estate plan considers all things in your life and consists of your beneficiary designations, bank accounts, investments, retirement accounts, insurances, personal property, family heirlooms, the people in your life, your family and kids, detailed desires and instructions for how to raise your children, and anything that comprises your financial and family life. All of these things need to be planned for because they may be around longer than you are or need management while you’re incapacitated and can’t manage them yourself.

What things should parents consider?

Parents should think about who would care for their kids if something happened to them. Parents should also consider how they would want their money spent to benefit their kids if they were no longer able to care for their kids due to illness or death. This can be multi-faceted because the way you would want your money spent for your kids while they’re under the age of 18 might be different than the way you would want your money spent for your kids’ benefit when they’re adults.

Parents should also consider avoiding the probate court because money left to children in probate often ends up restricted during their minority then distributed directly into their hands when they reach age 18 without any guardrails or oversight. Probate often comes with statutory waiting periods before assets can be transferred, bond premiums paid by your estate to insure against a custodian’s potential bad acts and a lot of monetary expense in attorney’s fees, filing fees and legal publications.

Parents should also consider how they would want their kids supported after they’re 18 years old. Of course, an 18 year old is an adult, but that doesn’t mean their undeveloped brains are ready to manage hundreds of thousands of dollars left to them from the sale of your home and your retirement and life insurance proceeds. Instead, parents should consider forming a trust and naming a trustee to manage payments for your adult children’s benefit for education, buying a home and maybe even an allowance to supplement their income in their early career years until they’re old enough to manage their full inheritance on their own.

How do I get an estate plan?

There are many options for getting an estate plan, including options to DIY. Internet companies like Rocket Lawyer, LegalZoom and Trust & Will have created platforms for you to fill out forms yourself. However, as we discussed above, estate planning is more than just documents. It’s an entire subsection of your financial life and your children’s future.

To get a sound estate plan that will truly meet your goals and needs, you should consider contacting a competent attorney who specializes in comprehensive estate and legacy planning. For more information, do attend one of our Thursday night webinars to learn estate plan dos and don’ts and hear about our firm’s non-traditional options for comprehensive planning.

This blog is a service of Legacy Estate Planning. All rights reserved. 

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