You know you should have an estate plan. You may think about it, but if you’re like many people, you’ve never actually gotten around to having an estate plan drawn up. Estate planning professionals estimate that 70 percent of Americans don’t have an estate plan.
There are many reasons people put off estate planning.
One reason is simply that no one likes to think about their own mortality. The truth is, there is no way to avoid the fact that you won’t be able to dictate how your assets are divided up from beyond the grave –unless you have an estate plan.
Another reason people never get around to drawing up a will and/or trust is the belief that they don’t have enough assets to need one. People mistakenly think that only the wealthy need estate planning. The truth is that everyone needs an estate plan.
If an individual dies without a will, or “intestate,” the state decides what happens to the decedent’s property. You can make the process much easier on your family by putting your intentions in writing, either in a basic will or a will plus a living trust. A will can specify who gets what after you die. A living trust can help you avoid probate, reduce estate taxes or set up long-term property management. Both are part of a good estate plan.
Property transferred into a living trust before you die doesn’t go through probate. Instead, the trustee you have appointed merely transfers ownership to the beneficiaries you named in the trust. If privacy is a big concern for you, living trusts offer the advantage of being shielded from public disclosure. While a will becomes a matter of public record, the terms of a living trust are not required to be made public.
It may all sound overwhelming at first, but there are many professionals trained and qualified to help you make your estate planning effective.
Estate planning is appropriate for any stage of life — if you don’t prepare for the inevitable, you may create needless heartache and loss for those left behind. Your estate plan should allow you to give what you want to whom you want to receive it, the way you want them to receive it and when you want them to receive it. Your estate plan should save every tax dollar, professional fee and court cost legally possible. Use good estate planners to ensure things work the way you want.
Jeffery J. McKenna is a local attorney serving clients in Nevada, Arizona and Utah. He is a shareholder at the law firm of Barney McKenna & Olmstead, PC, with offices in Mesquite and St. George. If you have questions you would like addressed in these articles, you can contact him at (435) 628-1711 or jmckenna@barney-mckenna.com.