Hiring an estate planning attorney can be an unpleasant topic, but it’s never too early to start planning ahead since the future is unpredictable. Fortunately, you can be better prepared for whatever may happen later in life by consulting with an estate planning attorney. Here are five ways this type of lawyer can help you when it’s time to make estate-related decisions.
Drafting a Sensible Will and Testament
One of the basic – but still very important – steps an attorney specializing in estate matters can take for you is to help you prepare a will. By consulting with a lawyer for this process, you’ll get a better idea of what options you’ll be able to consider as you make meaningful decisions about such things as your assets and who would be responsible for any younger children you may have.
Updating an Older or Outdated Will and Testament
A will isn’t meant to be set in stone. Because circumstances and relationships can change over time, it’s best to consult with an estate planning attorney if you have an existing will that needs updating. Even if no significant changes are needed, it can be helpful to have an attorney go over the various provisions in your will every now and then.
Exploring Options for Trusts
There are many ways to divide your assets as you go through the estate planning process. Other than a will, one of these options is to set up a trust. This can be a complex process if you have multiple family members or loved ones you want to provide for in some way.
An attorney can go over the possibilities with a trust, explain the pros and cons of each one, and get everything set up as per your preferences. Types of trusts an estate planning lawyer can help you explore and establish include:
- Revocable trust: created during your lifetime that can be altered or revoked entirely
- Irrevocable trust: cannot be changed
- Asset protection trust: provide protection from claims made by future creditors
- Charitable trust: minimize the impact of estate and gift taxes
- Tax by-pass trust: allows for the transfer of assets to a spouse in a way that limits federal tax burdens
Selecting and/or Changing Beneficiaries
From trusts to insurance policies, there are many estate-related documents that require you to name beneficiaries. If you fail to take certain steps with beneficiary designations, some of your documents may not hold up legally. A lawyer can also give you a more detailed explanation about what to consider before you make final decisions with beneficiaries.
If you’ve already selected beneficiaries on your estate-related documents, an estate planning attorney can help you complete any changes you may wish to make. New family members from more recent marriages or births can also be properly added as beneficiaries by a lawyer familiar with this process.
Preparing Supplemental Documents and Power of Attorney
Lastly, an estate planning attorney can give you some insights into supplement documents you may wish to consider. For instance, a durable power of attorney (POA) allows you to designate someone to act on your behalf if you are unable to do so. Some other supplemental estate documents an attorney can help you properly prepare and/or update include:
- A letter of intent to clarify details about your assets or funeral plans
- A healthcare power of attorney to designate someone to make important healthcare decisions should you become incapacitated
- A living will or advanced directive for medical decisions you’re not able to make yourself