Although much has been written about estate planning, there are still plenty of questions surrounding the process. Many people assume that putting their affairs in order is merely for the wealthy, while others tread lightly around the idea because of its unenjoyable context. Unfortunately, this can lead them to fail to realize that a sound estate plan is all about protecting their family. Here’s what prospective planners want to know.

Frequently Asked Questions About Estate Plans

What is it?

Planning your estate goes beyond deciding where your assets go—it ensures that your wishes are met while preventing discord among family members during this trying time. It’s also a way to ensure there are fewer complications, lower estate taxes, and the presence of a reputable representative acting on your behalf in case of severe illness or incapacity.

Is a will enough?

In general, a will contains instructions on how to distribute your assets and names an executor to carry it out. Without it, the disposition of assets will be done based on a state’s intestate law. For example, your spouse will get half of your assets by law, even if it’s against your wishes.

There are instances when a will is insufficient, especially if you have minor beneficiaries. A revocable living trust assigns a trustee and contains specific provisions regarding the use and distribution of assets. It also ensures your estate doesn’t have to go through probate.   

Aside from a will and trust, estate planning also requires other documents, such as a durable power of attorney for your finances and a health care proxy for medical-related decisions made in your best interests. 

What is probate?

Probate is the formal court process that happens before the distribution of assets. Even with wills, probate is conducted to ensure the integrity and authenticity of the executed documents. Once it confirms that everything is in place, the process is much faster.

Without proper estate planning, probate becomes burdensome. Assets that are not jointly owned, payable on death, or have no named beneficiaries will be equally distributed to surviving heirs according to probate law after the settlement of taxes and debts.  

How can a lawyer help?