FAQs

If you are beginning your estate planning process, there is a good chance that you have many questions and require assistance. The professionals at ‘In Will We Trust’ are available to answer any questions you want answered. Here are our responses to the most frequently asked Estate Planning questions to get you started.

What Is Estate Planning?

The process of setting up your assets distribution and the management of your affairs, after your death is known as estate planning. Through estate planning, a person can specify how their assets, such as real estate, cars, personal property, life insurance, investments, and cash, will be divided after death. You can also decide who will look after minor or special needs kids. Further, you may also be able to specify how your medical care will managed if you become incapable of doing so with some estate planning documents.

Planning your estate is crucial for several reasons, including:
  • The ability to manage how your assets will be handled and distributed after death.
  • It may reduce taxes and legal costs.
  • It guarantees that your wishes regarding medical decisions and the custody of minor children are taken care of. 
  • It gives you and the people you care about peace of mind.

Starting estate planning soon is a good idea. Ideally, you begin when you have assets you want to protect. That includes your house, vehicle, investments, and anything else of value. Also, when a life-altering event occurs like the day you get married or have your first child. Furthermore, you will benefit from estate planning sooner if you start early.

Estate planning documents typically include a Will, Trust(s), durable power of attorney, healthcare proxy, medical directive, and a Living Will. Your circumstances will determine which specific documents you require.

Yes, you should regularly review and update your estate plan when significant life events occur. These include:
  • Home purchasing or selling.
  • Buying a boat or some other sizable asset.
  • Launching a business or selling one.
  • The birth or adoption of a child or grandchild.
  • Marriage and divorce.
  • Death of a beneficiary.

Without an estate plan, your assets will be distributed, according to state laws (intestacy laws), which may not align with your wishes. It can lead to potential conflicts and additional costs for your loved ones.

The Last Will & Testament will stand as your final directive, and the Pour-Over Will is its companion, guiding assets not previously accounted for into your Trust, ensuring comprehensive distribution alignment with your wishes.

Yes, even though a living trust may deal with many of the same issues as a Will, it is still advised that you draft a Pour-Over Will in addition to your Living Trust. Any property that the Settlor might not have transferred to the Living Trust, will be covered with a Pour-Over Will. If you do not have a Pour-Over Will, property acquired after the living Trust was established and listed in the Settlors name would typically pass to your heirs by State law.
Probate may still apply to assets not with the trust, do not have beneficiary designations, or are not jointly titled.

If you cannot make decisions for yourself, a power of attorney is a legal document that enables you to name a representative to act on your behalf. A spouse, partner, sibling, or adult child who you can fully Trust must be your power of attorney. Your POA can make several decisions about your medical care and financial affairs but cannot alter your Will or handle any estate matters after your passing.

Estate planning strategies like gifting, setting up Trusts, and taking advantage of the Estate Tax exemption can help minimize estate taxes. Consulting with a tax professional is essential for proper tax planning.

No estate planning is not only about distributing assets. It also includes planning for your healthcare decisions, appointing guardians for minor children, and ensuring someone can manage your financial affairs if you become incapacitated.