Estate planning is not just for retirees; it can start anytime you choose. It’s a process that provides peace of mind by ensuring that your wishes are honored and your family well cared for. Estate planning also allows your heirs to receive their distribution from your accounts quickly, without the usual delays of probate court.
Consulting with an experienced estate planning attorney is a first step to understanding the benefits of establishing a legally-binding trust.
How Estate Planning Saves Time and Money
Estate planning is more than establishing inheritances for your descendants, as the process can reduce potential disagreements among family members. By working with an estate attorney, you may avoid thousands of dollars in probate costs as well as an average 8-12 month delay in the distribution of assets.
To create an all-encompassing estate plan, most attorneys suggest an array of legal tools, including:
- A fully executed will, signed and witnessed, that names your heirs, an executor, and assets is the foundation of your estate plan. A will spells out your wishes, provides instructions on the disposition of accounts, plans for children under age 18, real estate, and belongings. If you die without a will in South Carolina, the probate court distributes your assets according to state law rather than according to your desires.
- Naming beneficiaries and creating right of survivorship designations will assign specific accounts to a spouse or family member, eliminating the need for the account or property to be probated. Making the deed to property automatically assigned to a co-owner (called “transfer upon death” or “right of survivorship”) will likewise pass ownership of real estate to your spouse or designee, bypassing probate.
- A power of attorney gives a trusted friend or family member the ability to act on your behalf in a specific area, such as paying bills and providing for your family if you become incapacitated.
- A healthcare power of attorney is a state specific document for South Carolina. This goes into effect at the time your power of attorney does, allowing a person you designate to make medical decisions according to your wishes.
- A revocable trust is a tool that helps keep your estate from probate court and makes the transfer of assets quick and efficient. A trust is a financial tool that you establish by assigning your accounts, properties, and valuable assets to it. If desired, a trust can be tailored to distribute assets to minor children gradually for their ongoing needs as well as to strategically fund the needs of family members who have financial issues (called a spendthrift provision).
Once you have documented and established your trust estate, it is essential to keep it updated by revisiting the documents periodically and adjusting beneficiaries and officers (executor, trustees) when there are births, deaths, marriages, divorces, and other family changes.
A revocable trust allows you access to the assets in it until your death. Trustees are named to manage the trust and an executor is named to oversee the provisions of your will. The will executor also handles the final aspects of your estate, such as paying taxes and outstanding bills. It’s important to discuss the roles of trustee and executor with the people named, to get their consent and provide them with information about the duties involved.
Making Sense of Wills and Trusts
Finding an estate attorney who is qualified and experienced is a critical first step to establishing your estate plan. Gathering information about your assets, real estate holdings, accounts, and family members or beneficiaries is next. Your attorney will translate your desires into the estate planning tools chosen, enabling a quick transfer of assets according to your wishes. They can also consult on reducing potential disputes over inheritances among your descendants.If you want to make life easier for your family members, contact Lam Law for a consultation on your estate plan today. It will save money, give you control over your assets, and take care of your family members in the future.
