Estate planning is an extremely important process that allows you to make important decisions about how you would like your property and assets distributed after you die. However, despite the many benefits of having a well-thought-out and comprehensive estate plan in place, people are often intimidated by the process or avoid the topic because they do not want to think about the prospect of their untimely death. While this can be a complicated topic, having an estate plan ensures that your property is distributed according to your wishes and that your loved ones are provided after you die.
An estate planning lawyer will discuss the benefits of estate planning, address why it is in your best interest to have an estate plan and assist you with every step of the process.
Why Do I Need an Estate Plan?
It is a common misconception that estate planning is only necessary for people with substantial assets and property. However, even if you have more modest means, it is in your best interest to consider how you would like your assets distributed if you die or become incapacitated. Regardless of your age, wealth, or family situation, creating an estate plan is highly recommended for the following reasons:
Control over your assets. If you do not have an estate plan in place, your assets will be distributed according to Ohio’s intestacy laws, which may not align with your wishes or estate planning goals. An estate plan also allows you to decide who should be the beneficiary of your assets and how much they should receive. You can also ensure that your children do not lose their inheritance as a result of a divorce, poor business decisions, or debts.
Minimize taxes. If you do not have an estate plan in place, a significant portion of your estate may be taxed. Some estate planning strategies can avoid this, including setting up a trust or a lifetime gift. An estate planning lawyer will discuss these options and recommend strategies that will minimize the tax burden your loved ones could face when inheriting property.
Prepare for becoming incapacitated. You never know when life is going to throw you a curveball. You could be diagnosed with a debilitating disease or severely injured in a car accident, causing you to become incapacitated. An estate plan allows you to give a trusted individual power of attorney, which allows them to make important financial decisions on your behalf. A healthcare directive allows you to make decisions about whether you want to receive medical intervention in certain situations.
Avoid probate court. In certain situations, you may be able to avoid the probate process, which can be expensive and time-consuming. For example, you can make a living trust for any asset you own, including real estate, bank accounts, vehicles, and other items of value. You will need to create a trust document and name a successor trustee who will take over the trust after you die. You will then need to transfer ownership of the property to yourself as the trustee of the trust. The terms of the trust will then control the property.
Avoid conflict with family members. If you do not have a detailed estate plan in place, there is an increased risk of hurt feelings, confusion over the details of the documents, and conflicts over inheritances if family members believe they are entitled to more than what was bequeathed to them. An estate planning lawyer can help you avoid family drama by walking you through the estate planning process and ensuring you have a well-defined estate plan.
What Are the Steps Involved in Creating an Estate Plan?
There are a number of steps involved in the estate planning process:
Make a list of assets. Create a detailed list of all of your assets, including your home, bank accounts, investments, retirement accounts, life insurance policies, personal items of value, and online and digital assets.
Define your estate planning goals. This is an important step in the process, and it will likely include deciding who your beneficiaries will be, setting up a trust for your children, and creating a plan that minimizes taxes.
Select beneficiaries. You will need to decide who will inherit your property and other assets.
Draft a will. Write a detailed will that specifies who should inherit your assets after you die. You will also need to name an executor who will ensure that your wishes are carried out. A guardian will need to be named if you have minor children who will need to be cared for if you die and the other parent is unable to care for them.
Set up a trust. This allows you to protect your assets, control how and when your beneficiaries have access to their inheritance, and avoid probate if that is one of your goals.
Choose a durable power of attorney. This person will manage your finances if you become incapacitated.
Create healthcare directives. A living will allows you to specify your wishes for medical treatment if you are unable to communicate your wishes.
Discuss beneficiary designations. Make sure the beneficiaries on your life insurance, retirement accounts, and other financial accounts have been reviewed and updated.
Consult with an estate planning lawyer. The estate planning process can be complex and overwhelming, so it is in your best interest to work with a knowledgeable estate planning lawyer to help you navigate it.
The Blue Ash Estate Lawyers at Wolterman Law Office Help Clients Navigate Every Step of the Estate Planning Process
If you are interested in drafting a will, establishing a trust, or any other estate planning goals, do not hesitate to contact the Blue Ash estate lawyers at Wolterman Law Office. To schedule a free, confidential consultation, call us today at 513-790-4207 or contact us online. Our office is located in Loveland, Ohio, and we serve clients in Hamilton County, Fairfield, Norwood, and Forest Park.