What Is Estate Planning?
Estate planning is an important step in providing financial security and peace of mind for you and your family. Not only does it ensure that your wishes are met after death, but it can also significantly reduce the costs and taxes associated with transferring your assets to heirs. By understanding the various elements involved in estate planning and taking time now to learn best practices, you will be able to provide a secure future for those most important to you.
Keep reading to learn more about estate planning. If you’re looking for help with estate planning in Milwaukee, Brookfield, or a nearby community in southeastern Wisconsin, contact Margerie Law today.
What is Estate Planning?
Estate planning is an ongoing process of organizing your assets and preparing for the possibility of incapacity or death. It involves making decisions about who will manage your assets if you become incapacitated, as well as who will inherit them after you pass away. Estate planning also helps protect your heirs from probate fees and taxes. By engaging in estate planning, you can create a plan that will accomplish specific goals in accordance with your wishes, such as preserving family wealth and avoiding conflict among heirs.
Elements of an Estate Plan
To get started with estate planning, it’s important to understand the various elements involved and some key concepts related to the process. Here are some of the most common elements of estate planning:
Wills: A will is a legal document detailing how you want your estate to be managed upon your passing. Your will outlines how you would like your property distributed among beneficiaries (e.g., family members or charities). This document should be prepared with legal guidance in order to ensure proper execution after death. Learn more about wills.
Trusts: A trust is another way to transfer assets at death or during a lifetime if certain conditions are met. It allows the creator to avoid probate costs, maintain control over the asset even after their passing, and protect those assets from creditors or potential lawsuits against the beneficiary(ies). Learn more about trusts.
Powers of Attorney: A power of attorney allows you to appoint someone to make financial or legal decisions on your behalf if you become unable to do so due to mental or physical incapacity. Depending on state law, this person may have different authorities than those outlined in a living trust agreement or financial power of attorney document. Learn more about powers of attorney.
Healthcare Declarations: This document outlines what kind of medical care you wish to receive should you become terminally ill or otherwise mentally unavailable to make such decisions yourself. It’s a crucial part of any estate plan since it enables others (family members, close friends), not just healthcare providers, to make important end-of-life decisions on one’s behalf.
Estate Planning Tips
Estate planning can vary widely based on individual circumstances and objectives; however, there are some general tips that apply across situations:
- It’s never too early to start estate planning. Even if you don’t think you have anything to protect, estate planning is crucial for every adult;
- Make sure that all necessary documents are drawn up correctly with help from an experienced lawyer;
- Keep all pertinent documents together in one place where they can easily be accessed;
- Review these documents regularly so that details remain up-to-date and any changes can be accounted for;
- Communicate regularly with family members about the structure of these documents in order for everyone involved understand their role and responsibilities clearly;
- Ensure that all parties named in relevant documents have valid copies available should anything arise which requires proof of ownership/power.
Estate planning plays an important role in protecting your family and your legacy. If you have questions or need support on your estate planning journey, the best thing you can do is consult an experienced estate planning attorney. For those in Wisconsin, Attorney Paul Margerie can help you with all aspects of estate planning in Milwaukee, Wauwatosa, Elm Grove, or even virtually. Click here to learn more.
