An estate plan serves as a guide for your loved ones follow when determining how your belongings should be handled after you pass. Documents, such as wills and trusts, help detail your wishes and instruct others how to proceed on your behalf. Here’s an overview of the importance of estate planning and how to go about making sure your affairs are in order.

What Everyone Needs to Know About Estate Planning

Consequences of Not Having an Estate Plan

If you pass away without a plan, state law will determine who inherits from you. This can cause discord between family members as they might not agree on who gets what. If you do own assets, your estate will be subject to probate. This is the legal process whereby a decedent's debts are settled and property distributed to heirs and beneficiaries.  Probate can be time-consuming for your beneficiaries and may be costly.

Benefits of Estate Planning

With a will and trust in place, you’ll retain control of how your assets are allocated and prevent them from ending up in the wrong hands. You can also implement strategies that minimize your estate taxes, allowing your beneficiaries to receive as much of their inheritance as possible. If you have minor children, you can ensure they’ll be looked after by someone you approve of rather than a court-appointed guardian.

How to Create an Estate Plan

Many people begin their estate plan with the creation of a will or trust. This involves designating beneficiaries and deciding where your assets should go. An estate planning lawyer can help explore other tools you may need, such as a power of attorney and health care directive. It’s also essential to choose someone to be the executor of your estate. This should be a person you trust, since this person will be in charge of representing your estate, taking care of your final financial obligations, and making sure your wishes are carried out after your death.

If you want to get your affairs in order by creating a will and trust, contact the Law Office of Dawn N. Murata LLLC, in Lihue, Hawaii.  She has clients in Hawaii and on the mainland, and has helped with estate planning and probate matters, deeds, business formations, contract drafting, and real estate transactions. Call (808) 245-4572 to set up a consultation, or learn more about her services online.