Almost everyone owns an estate and mostly has an estate plan stored, usually including a Living Trust. If you don’t have plans, that’s chaos, literally.

For beginners, an estate plan is not just about who is going to inherit your condo after you die. Your estate plan matters even when you are sick or incapacitated, and it’s critical for anybody who depends on you.

Let’s assume, unfortunately, you got hit by a car and you are lying unconscious in the hospital; who is legally going to manage your finances, pay bills, take care of your kids, and make informed decisions concerning your health?

Your spouse, right? But what if he/she is out of the action? This article will walk you through how an attorney structures an estate plan concerning their clients so life will continue moving smoothly.

Determine Your Estate Planning Goals

The first step a lawyer takes to structure an estate plan is asking the client what their goal is. This will save time and streamline the process of addressing areas that are important to the client.  Most people choose an estate plan to remove the burden from their loved ones after their death.

The lawyer will help you determine what exactly the estate plan should accomplish so it will be easier to know the type of documents that should be included. Overall, the first step they follow is to ask you to name your beneficiaries.

The lawyer will also ask you whether you want to go for an estate plan to reduce your tax burdens on the estate. If this is your goal, the attorney will explain state and federal tax regarding inheritance. This will help them determine the type of account that will meet your needs for tax considerations.

If your goal is to protect your assets from debtors, creditors, and more, the lawyer will ask you to consider creating a trust or suggest a legal framework to protect your assets from the threats.

Take Inventory of Your Assets and Debts

The attorney will help you organize information about your assets, debts, and obligations. They will create a list of your financial accounts, such as bank accounts, retirement, investment portfolios, real estate, jewelry, and any valuable item you have. They will also ask if you are in partnership with any business, details about your ownership percentage and shares, and more.

Lastly, they will ask you to list your financial obligations like debts or liabilities such as mortgage, credit card bills, and many more.  They will create a plan and structure for how you manage or sell each of those assets, how you want it to be distributed, and a plan to help you fulfill your financial obligations and pay your debt after you pass. 

Read https://www.getsmarteraboutmoney.ca/learning-path/managing-debt/strategies-to-pay-down-debt/ to learn more about how to pay off your debts while you are alive.

Draft and Finalize the Necessary Documents to Fulfill Your Wishes

At this rate, you probably are already aware of who your beneficiaries are, but you will still need to designate a trustee, that is if you are establishing trust, someone who will execute your plans if you are including a will in the plan. That’s where the power of attorney comes into play, an attorney like Hunsberger Dunn LLP, Hunsberger Dunn will help you create an advanced health directive and a guardian for minor children where necessary.  Next, the lawyer will assist you in writing down distribution portions for dispersing the assets within your trust if applicable. The attorney will ensure you address everything and meet the goals of your efforts without encountering any legal questions.

Revisit Your Estate Plan Periodically

Your lawyer knows how essential it is to visit everything at least every five to ten years. They will help you update it where necessary, especially after a significant life event like birth, death, divorce, or marriage happens. They will also help you revisit it after the acquisition or selling of one of the assets. It would be best if you kept in mind that in California, marriage dissolution or annulment automatically revokes their ex-spouse’s disposition, appointed power, property designation, or fiduciary nomination except the will stated otherwise. Additionally, marriage to a new spouse will invalidate any preexisting trust.

Conclusion

While you can sit down and create your estate plan by yourself, it’s advised to go through the whole process with an attorney. First, they are experienced in handling similar activities, and they will advise you on the right thing to do. They will consider your goals and create a plan that will be in favor of both you and your family, analyze your assets, and create a plan that will help you pay off your debts if there are any.