Estate planning is one of those things that many people tend to put off because they are too busy living their lives, and most haven’t given thought to their end of life wishes or the legacy they want to leave behind. In light of the current COVID-19 pandemic, more attention is being given to that area and people have more time on their hands to think about estate plans. Now is the best time to develop an estate plan or review the one you already have in place.
Estate planning is the overall process of placing your affairs in order should you become incapacitated or pass away. Planning is imperative to avoid probate and maintain privacy, protect assets and beneficiaries, reduce taxes, control the distribution of your assets, and reduce the time and effort required of loved ones prior to and after your death. Poorly planned estates can result in expensive guardianship proceedings during your lifetime, a mess for your heirs, and people receiving your estate who you never intended. Furthermore, if you have minor, disabled, or charitable beneficiaries, it is imperative to properly plan to ensure your legacy has a positive impact.
Some simple planning techniques are available at your financial institution such as Pay on Death or Transfer on Death designations. A simple estate plan drafted by an attorney usually consists of four documents. Three of these documents: the durable power of attorney (financial decisions), designation of healthcare surrogate (medical decisions) and living will (wishes for care at end of life) all impact you while your living. This plan also incorporates a last will and testament to provide instructions for the disposition of assets at your death. Many individuals also incorporate a ladybird deed to transfer their house without probate. When using a simple will, it is important to incorporate beneficiary designations in your planning to avoid probate to the extent possible. The complexity of your plan has more to do with your beneficiaries, the types of assets, and the types of control you wish to have over after death, than it has to do with the size of your estate.
There are increased levels of estate planning and many individuals decide to implement a living trust to avoid probate; however, the most important thing to remember is that if you want to be in control over your decisions while living and your estate after death, it is prudent to have an estate plan in place. How do you begin? Contact an estate planning attorney. When is the best time? Now.
D.W. Craig Dreyer, J.D. and LL.M., a partner of Dreyer Law Firm, P.L., has represented clients throughout the state of Florida. Licensed in both Florida and Ohio, his practice focuses primarily in the areas of estate planning, probate administration, trust administration, and business counseling. Craig advises clients on a broad array of estate planning techniques and counsels clients through the probate and trust administration process. He routinely handles estates of all sizes and complexities from very modest summary administrations to extremely large probate estates involving significant assets with complex family and business structures.
