Estate planning involves developing a comprehensive and ongoing plan to manage your financial affairs and assets throughout your working years and retirement, and to distribute your assets after death. It is a collaborative effort between you and your attorney and may also include your financial advisors and institutions.
Every person who owns property, no matter how small, should have a Last Will and Testament, a legal document executed by a testator that details the final wishes pertaining to the distribution of real and personal property to beneficiaries upon the testator’s death. Importantly, the will does not have legal effect until the testator dies and the will is validated by the appropriate court through what is called probate.
A Revocable Living Trust is a common alternative to distributing assets upon your death. A revocable living trust goes into effect while the settlor (the person who establishes the trust) is still living. It can be changed or revoked completely while the settlor is alive and it generally allows for assets to be passed to the beneficiaries of the trust without the need for probate through the court.
Estate planning may include designating guardians for your minor children in the event of your death or incapacity, appointing agents under powers of attorney to assist with your financial and business affairs as well as medical and healthcare decision-making in the event of your incapacity.
Estate planning generally includes designating beneficiaries to receive certain assets directly (outside of your will), including financial accounts and real estate.
Many factors play into establishing a good plan, from the type and value of assets held, family dynamics, your risk and control preferences, the ages of your beneficiaries, and any special needs of your loved ones. At Hubbard + Rotthier, we take time to learn about your particular situation and understand your goals in order to create the best plan for you.
