The majority of Americans do not have an estate plan in place. Creating an estate plan can seem overwhelming, but it is a necessary step we all need to take to protect ourselves, our assets, and our loved ones. Creating an estate plan involves executing multiple legal documents that state what you would like to happen to your money and property after you pass away.
You can also clarify what type of medical care you would like to receive if you become incapacitated. The goal of an estate plan is to outline how your assets should be distributed to your beneficiaries and make provisions for paying your taxes and other debts. We have outlined the basic steps for creating an estate plan below.
Make a List of What You Owe and OwnDetermining your net worth and the value of your state is an essential aspect of estate planning. One of the first steps you should take before you meet with your lawyer is to create a list of all the assets and property you own and their estimated values. You should include all of the following types of assets and debts in your list:
Once you determine your assets, you should subtract your liabilities to arrive at the value of your state. Writing down a list of your assets and liabilities will help your estate planning lawyer create an effective estate plan tailored to your needs.
Consider Whether You Need a Revocable Living Trust or WillMost estate plans are will-based or trust-based. If you have a relatively simple estate, creating a last will and testament may be enough to meet your goals. However, if you have a complex estate, significant resources, or a child with special needs, you should consider creating a trust-based estate plan. There are many different types of trust, and your estate planning lawyer can help you evaluate which type of trust will work best for your situation.
Establish a Health Care DirectiveIn addition to protecting your assets, an estate plan can also help you protect yourself should you become incapacitated. We can help you create a health care directive, also called an advance directive or a health care power of attorney. This type of legal document allows you to appoint a healthcare agent who can make decisions for you if you become incapacitated. You can also state what kind of medical treatment and life support measures you would like to be taken if you become incapacitated.
Identify Your BeneficiariesWhen you create your estate plan, you will need to identify who you would like to receive your assets after you pass away. If you own property jointly with your spouse, your spouse will automatically become the owner when you pass away. If you own a property exclusively, you will be able to select the beneficiary. You can give your assets to your family members, friends, or an organization, such as a charity or school. If you would like to donate your estate to a charity or nonprofit organization, we can help you set up a charitable trust.
Make Your Plans and Organize Your DocumentsThe last step in the process involves working with an attorney who can create your legal documents. Once your estate plan is complete, we recommend organizing all of your documents and telling your family members about the location of the documents. You should advise a trusted family member or friend of your general estate plans and decisions and provide them copies with essential documents or digital files. If you experience a significant life change, such as a divorce or the birth of a child, we recommend discussing your state plan with your attorney.
Contact a Charlotte Estate Planning LawyerThe more important step in estate planning is working with an experienced estate planning lawyer. Estate planning is a highly complex, detailed, and time-consuming process. A qualified estate planning lawyer will understand the big picture of your family’s desires and needs. Selecting a lawyer with whom you are comfortable discussing your goals is crucial. Make sure your lawyer can help you down the road should your circumstances change. The lawyers at Arnold & Smith, PLLC are here to help. Contact us today to schedule your free initial consultation.