While estate planning is mainly associated with older individuals, anyone can make arrangements concerning their assets regardless of age. Doing so provides a form of insurance because you know your loved ones, or beneficiaries, will be taken care of. Here, get answers to common questions about this special planning process and why it’s important.

Questions About Estate Planning Answered

What constitutes an estate?

An estate includes all property owned by you at the time of your passing, including all residential and commercial properties, vehicles, bank accounts, stocks and bonds, retirement accounts, and life insurance policies.

In addition to cars and trucks, other personal items of monetary value, such as jewelry, fine art, and equipment, are included. Estate planning allows you to determine how you want your assets distributed, such as leaving residential properties to immediate family and donating fine art to a local museum.

What is the difference between a will and a living trust?

Wills and living trusts play roles in most estate plans. A will outlines your wishes regarding property distribution upon your passing. The document must adhere to state guidelines. For example, will validity in Virginia requires writing down your instructions and adding your signature. You must also have at least two witnesses of sound mind present.

Wills are subject to probate court, which reviews the documents prior to asset distribution. Living trusts avoid probate because they allow direct asset distribution without court interference.

How will my family be affected if I don’t create an estate plan?

Lack of estate planning generally results in lengthy, expensive probate court proceedings. In Virginia, the court appoints an administrator, or personal representative, to obtain and secure assets, schedule asset appraisal, pay estate debts, and issue remaining property.

State laws dictate the closest relatives of the deceased receive these assets if there is no will. Federal estate taxes apply only if property is valued at $11.58 million or more.

What other benefits do estate plans provide?

Estate planning allows you to create an Advanced Health Directive that dictates your final wishes, such as those regarding life support and what type of care you want if you become disabled. It also makes it possible to name guardians for minor children, provide life insurance payouts to family members at the time of your death, and create instructions regarding business and Social Security benefit transfers.

These benefits, along with asset instructions, reduce fees associated with probate court and taxes. It’s also possible to amend your estate plan whenever you want. 

Start the estate planning process with the team at PoindexterHill, P.C. in Waynesboro, VA. Whether you need assistance settling your financial affairs or require other services such as contract drafting or business incorporation, you can count on these esteemed lawyers. Call (540) 943-1118 to schedule a consultation or review the firm’s practice areas online.