Estate planning is something everyone with an estate should do regardless of wealth. If you own a car, home, real estate, checking and savings accounts, investments, life insurance, furniture, and personal possessions, you should plan for your estate. Estate planning is making a plan in advance, naming the people or organizations you want to receive possessions after you die, and taking steps now to make carrying out your plan. instructions stating whom you want to receive something of yours, what you want them to receive, and when they are to receive it, with the least amount paid in taxes, legal fees, and court costs. The plan should also include instructions for your care and financial affairs should you become incapacitated before you die.
A will provides your instructions, but it does not avoid probate. A will only directs how assets titled in your name and without a beneficiary designation or other governing contract will be distributed upon a person’s death. Wills can include guardianship of minor children or pets, distribution of property and assets, funeral arrangements, and whom you choose to serve as your executor, the person ensuring your wishes are carried out. The assets must still go through probate court before they can be distributed to your intended beneficiaries. This process many take a few months to two years or longer. The court system, not your family, controls the process and the timing of distributions to your beneficiaries. Jointly-owned property and assets that let you designate a beneficiary (for example, life insurance, IRAs, 401(k)s, annuities, and certain other accounts) are not controlled by your will and usually will transfer to the surviving owners or beneficiary without probate.
A revocable living trust (combined with a will) is preferred by many families and estate planning professionals. A revocable living trust can avoid probate at death, prevent court control of assets if you become incapacitated during life, organize your assets together in one plan and reduce estate taxes, if you have a large estate. You can name yourself as the trustee and name a co-trustee or successor trustee. Because a trust is revocable, you can change it at any time. Unlike a probate, which will end at some point, a trust can continue long after your death. Assets can stay in your trust, managed by the trustee you selected, until your beneficiaries reach the age you want them to inherit or longer to provide for a loved one with special needs; to protect the assets from beneficiaries’ creditors, spouses, and irresponsible spending; or to provide for future generations.
Planning your estate now will help organize your records, correct titles, and designate beneficiaries so your family does not need to look for this documentation after your death. You can put something in place now and change it later, which is exactly the way estate planning should be done. It should not be a one-time event. You should review and update your plan as your family, financial circumstances, and relevant laws change over your lifetime.
Although estate planning may cost some money now, it will save money for your family. Knowing you have a prepared plan in place—one that contains your instructions and will protect your family—will give you and your family peace of mind. Estate planning is one of the most thoughtful and considerate things you can do for your loved ones.
On November 7, 2024 Thursday, from 12:30-1:30pm (after the Rambling Rose Meeting), St. Therese of Lisieux will host a lecture on Elder Law and Estate Planning presented by the Rutkowski Law Firm. Since a light lunch will be served, please RSVP to the Parish Office at 586-254-4433 or Marilyn Cito, Parish Nurse at 586-254-4433 Ext #320 or via email at Marilync@stol.church.
References:
- www.estateplanning.com/What is estate planning? WealthCounsel, LLC, November 25, 2020
