What would happen if I died? What would happen if both my spouse and I died tragically and unexpectedly? Who would care for my children? Who would provide for them? Where would they live? Would they be able to go to college? What would happen to all my personal belongings?
No one likes to think of these types of questions. We would like to think that we will take care of those situations and questions “someday” when we get older. Yet, if we do not answer these questions ourselves someone else, like the courts, will answer these questions for us.
When you think of estate planning do you think of a method in which to answer these types of questions or do you envision a concept that brings up visions of summer homes in the Hamptons and palatial estates. At some point in our lives, everyone needs an estate plan, including the person who does not have a large estate. Quite often the concept of estate planning is misunderstood as something only the rich and famous have to do; but every person should have an estate plan in place.
At its simplest level, an estate plan is a number of legal documents that help protect you and your family in the event of your incapacity or untimely death. However, on a deeper level, it is a process that attempts to anticipate future events and then craft a plan so that your wishes are fulfilled.
At its most basic level an estate plan will consist of seven documents
2. Living Will
3. Health Care Power of Attorney
4. Financial Power of Attorney
5. HIPAA Release
6. Personal Property Memorandum
7. Marital Property Agreement
So, why do you need to make an estate plan? Well if you don’t, the State of Wisconsin will make the decisions for you. I am willing to bet that the State’s plan does not coincide with your plan in every way. Unfortunately, the State does not know that you would want one of your siblings to care for your minor children. The State would not know at what ages to distribute your property and the amount of money to distribute to each of your children either. By creating an estate plan, you could specify specific individuals, specific time periods, and specific amounts of money. Your money can then be used for your children’s care and not used elsewhere. Furthermore, under the State’s plan, you may not give any assets outside of the family unit. If you wanted to leave some money to your favorite organization, you are out of luck.
So with an estate plan, you should do all of the following:
1. Designate someone to manage your affairs if you become disabled.
2. Name a guardian for your children if you pass away.
3. Provide for your minor children or grandchildren.
4. Reduce or eliminate Income, Gift, or Estate Taxes.
5. Give away your family heirlooms and sentimental items in a
Personal Property memorandum.
6. Designate who gets your estate and how.
7. Reduce the costs and time for administration of your estate.
The above list probably includes some facet of your estate you would want to control. Since we have established that you need an estate plan, what is the next step? You probably have some questions? You should give us a call at Epiphany Law and we can answer those questions. We pride ourselves in making this process as simple and as painless as possible. We would love to help you navigate these issues and come up with a plan to meet your wishes. For more information, visit www.epiphanylaw.com\estateplanningsimplied.