What Is Estate Planning?

Why is it important?
Estate planning is the process of anticipating and arranging for the management and disposal of a person's estate during the person's life in preparation for a person's future incapacity or death.
This process enables you to look after your loved ones, manage healthcare and financial choices, dictate how your property is distributed after death, and reduce unnecessary costs and taxes.

Key points

Estate planning involves much more than just creating a will.
  • Estate planning isn't just for people who are sick or elderly.
  • Decide who should make medical and financial decisions if you become incapacitated.
  • Avoid Probate.
  • Buying life insurance and appointing a guardian is essential if you have dependent children.

what is probate

It is a legal process.
Probate is the court supervised legal process that gives someone the authority to handle an estate when a person passes away.
It can be a slow, costly, and extremely public process — since probate cases are a matter of public record. In addition, a probate judge may make decisions you would disagree with if you haven’t outlined them in your estate plan. 
Whether a person dies with or without a will without a properly funded trust: probate is the only way to transfer assets out of their name and pass those assets on.

two reasons people go through PROBATE

Lack of education and procrastination.
A National Financial Educators Council (NFEC) survey of people’s finances in 2021 revealed that “financial illiteracy” cost Americans an estimated $352 billion that year alone.

problems with probate

Here are just a few.
  1. Fees - probate court and attorney fees can add up to thousands of dollars
  2. Conflicts and misunderstandings regarding inheritance
  3. Privacy is completely forfeited since probate is a public matter
  4. Complexities usually accompany probate
  5. Consuming time and resources
  6. Stress on the family

why should i set up an estate plan?

Here are a few reasons to consider?
  1. Avoid probate and other costly fees
  2. Make provisions for your care should you become incapacitated
  3. Minimize family conflict
  4. Creditor protection
  5. You have control
  6. Preserving privacy
  7. Reduce voluntary taxes and estate taxes
  8. Protect your family
  9. Special need planning

Will vs trust

What is the difference?
There are many. Simply put a will provides details on how to distribute your assets after death and does not protect your assets if you become incapacited.
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​Trusts are legal contracts that allow you to transfer your assets, while you are alive and after dealth to an account managed by the trustee (can be yourself if alive).

videos

Avoid Probate with a Living Trust​

Even if we have a will at the time of our passing, all of our assets and liabilities will need to be settled in probate court before they can be distributed to our families.  Watch this short video to learn how your estate can easily avoid the delay and cost of probate for your family.

“End of Life” Legal and Financial Considerations

If you realize that a fatal accident or illness can end your life at any time, and you don't want to leave your family unprepared, watch this video to learn how important it is to provide instructions and make provisions for the “End of Life”.

​The Reality of Probate
When someone dies with assets titled in his name alone, as happens when using a "stand-alone will" (only) to transfer assets at death, such deceased person becomes a decedent property owner. A decedent is obviously unable to transfer his property to anyone. Consequently, the primary purpose of probate then arises which is to transfer title of assets from a decedent to the decedent's heirs. This proxy retitling/transferring of assets – to the decedent’s personal representative who then conveys the retitled assets to the decedent’s heirs – requires a surrogate court procedure called probate. 
Inherent complexities usually accompany probate. Detailed paper work and filings, formal hearings, asset appraisals, multiple agency fees, attorney fees, court fees, lengthy holding periods, and even unwanted litigation can all be a part of any probate process – consuming time and resources. 

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The information on this website is for educational use only. This material is not intended to replace any, tax, financial or legal advice. The reader should obtain personal counsel before implementing any methods described herein.