What are Estate Planning Services and Do You Need Them?
Estate planning involves having a plan in place for your finances and assets should you pass away. It ensures that key aspects are covered, such as drafting a valid will, naming beneficiaries, and more.
Regardless of your financial situation, estate planning services are essential for everyone. They ensure negative consequences are avoided, such as family disputes or your precious assets not going where you hoped they would.
Read the rest of this article to learn more about:
- What’s typically included in estate planning services
- What estate planning services you require
- When you should update your estate planning
- If you require a lawyer for assistance with planning your estate
What’s Included in Estate Planning Services?
There are important tasks that form part of estate planning services, but they might vary depending on your situation. These typically include:
- Assigning an estate administrator. This person will manage your finances in the event of your death.
- Drafting a will. Remember to include important information in your will, such as what will happen to your children or pets. Send your administrator a copy for safekeeping.
- Consulting with a financial planner. They will review all your financial accounts and advise you on how to better manage them.
- Drafting additional documents. You might want to include these in your estate planning, such as a letter of instructions for your funeral.
- Considering setting up a trust. This can help you to ensure correct asset management during life and after death, while assisting with the distribution of your assets.
- Choosing beneficiaries. You’ll name people who will receive your assets.
- Selecting appropriate guardians. If you have young children, you’ll want to designate guardians for them.
- Planning for estate taxes. You might have to pay taxes on assets when you die, which could be a burden for your beneficiaries. To prevent this, you might want to give your assets to loved ones during your lifetime or donate them to charities.
What Estate Planning Services Do You Require?
It can feel challenging to know what estate planning services you need. The ones you should choose will depend on various factors.
Consider the Size of Your Estate
If you have complex or diverse assets, you could benefit from setting up a trust or making use of estate tax planning. If your estate is smaller and less complicated, a will might be enough.
Pro tip: when considering your estate, you should compile a list of your assets. This shouldn’t only include financial assets like real estate and bonds, but also any personal items you would want to give those you love.
Think About Your Goals
Whether you want to ensure your beneficiaries are protected after your passing or you want to gain tax benefits, you should use your goals as a guide to help you select the most suitable estate planning services.
It’s worth chatting about your goals with trusted family members and your attorney, if possible, so that you can clarify your ideas.
Try to Avoid Probate
The probate process is when your estate has to be settled in the courts, and it can be time-consuming and expensive. You can prevent your estate from going to probate by engaging in estate planning services like setting up a revocable living trust or beneficiary designations.
Create a Plan for Possible Incapacitation
If you lose your mental or physical abilities, causing you to not be able to handle your financial affairs, this can be disastrous for your estate. Writing up a plan for what should happen in this event is crucial. You’ll need to appoint someone to take charge of your affairs.
When Should You Update Your Estate Planning?
Estate planning isn’t something you do once and then forget about. You should update it regularly, especially if you’ve experienced significant changes in your life, such as marriage, divorce, or financial changes. Your beneficiary relationships might also change, which could result in you wanting to assign new ones.
Do You Need a Lawyer for Estate Planning?
Although you don’t always need to hire a lawyer for your estate planning process, it’s usually recommended for various reasons.
If your estate is simple and straightforward, such as your assets include a house, car, and bank accounts, you might not require a lawyer for assistance. The same applies if you don’t have any complex family relationships that could cause issues.
However, if your estate is complicated, such as that you own multiple properties and have a large estate, you should consult with a lawyer who will be able to assist you with the process.
Here’s how a lawyer will help you:
- Your lawyer will draft and/or review a will so that it’s legally sound and clear, ensuring your wishes are clearly stated.
- They’ll assist you with establishing trusts and can advise you on how to reduce your tax obligations.
- They’ll take your specific situation and estate into account to help you explore your options.
- They’ll assist you with choosing beneficiaries so that you avoid any issues or disputes in the future.
- They can suggest services such as healthcare directives.
- They can structure your estate property correctly to avoid consequences such as probate issues.
- They’ll consider all state laws to ensure your estate planning is legally valid.
Do you need legal guidance for your estate planning?
If you want to speak to a lawyer about planning your estate, you should contact a lawyer on ContractsCounsel, an online legal marketplace that connects clients with experienced lawyers who have been vetted on the platform.
All lawyers on ContractsCounsel have the legal expertise to help you navigate the sometimes complex process of estate planning to give you peace of mind that your estate is looked after, even when you’re not around to protect it.
