Common Estate Planning Questions Part 2 of 2

When it comes to planning for your family’s future, the options can feel overwhelming. Should you get a will? Create a trust? And what happens if you do nothing at all? These aren’t just theoretical questions – your choices today will have a lasting impact on your loved ones.

In this second installment of our two-part Q&A series, we’ll break down key differences between estate planning options and explore practical ways to ensure your family’s protection. Let’s dive in by answering some of the most common questions about estate planning documents and processes.

Q: What is the difference between a will, a living trust, and dying intestate? What does that mean in practical terms?

A: If you die without an estate plan, you do have a plan – but it’s the one chosen for you by the state. This is called dying “intestate,” and it means your assets are distributed according to state law. This court-driven process, known as “probate,” often results in your assets being distributed in ways you wouldn’t choose. Your loved ones may face a lengthy, expensive, and public court proceeding during an already emotional time.

A will provides instructions for how your assets should be distributed after you pass away, but it doesn’t avoid probate. While a will allows you to name guardians for minor children and designate who receives your assets, your executor must still file it with the court. The probate process can take months or even years, and your estate becomes part of public record, exposing your family’s affairs to anyone who wishes to look them up.

In contrast, a living trust offers a more private and efficient way to handle your estate. Think of a trust as a container for your assets. During your lifetime, you control the trust and its assets, and after your death or incapacity, a successor trustee you’ve chosen steps in to manage your affairs. A properly funded trust avoids probate, so your beneficiaries can receive their inheritance within weeks or months instead of enduring a lengthy court process.

Q: Is probate always required when someone dies?

A: Not always. The necessity of probate depends on how your assets are titled at the time of your death and their total value. Assets solely in your name with no designated beneficiary generally require probate. However, there are exceptions:

• Jointly owned property passes directly to the surviving owner.
• Assets with named beneficiaries (like life insurance policies and retirement accounts) bypass probate and go directly to the named individuals.
• Assets held in a properly funded living trust are distributed according to the trust’s instructions without court involvement.

Because these details can be complex and have a significant impact on your loved ones, it’s essential to work with a trusted advisor who can guide you through structuring your assets to meet your goals. This ensures your family stays out of court and avoids unnecessary conflict.

Q: What if I’m uncomfortable talking about death and money?

A: It’s completely natural to feel uneasy about discussing these topics. However, avoiding them can leave your family with an expensive, time-consuming mess to handle during an already challenging time. Here’s what you need to know:

1. Without a plan, the court decides for you. If you become incapacitated or pass away without a plan, the court makes all decisions about your care and assets according to state law—not your wishes.
2. Your children’s future could be left to a stranger. If you have minor children and no estate plan, the court will decide who raises them and manages their inheritance, often without considering your preferences. Any inheritance left to your children will likely be given to them outright at age 18, with no safeguards in place.
3. Your family will face greater stress and expense. Without a plan, your loved ones will likely spend more time and money managing your affairs than if you had created a plan.

The good news? Estate planning doesn’t have to be overwhelming. Working with a professional who can guide you through the process step by step can bring peace of mind, knowing you’ve taken care of the people you love.

Q: How can I minimize stress for my family and make the process as simple as possible?

A: The best way to ease stress for your family is to create a clear and comprehensive plan ahead of time. Many people assume estate planning is stressful, but in reality, the lack of a plan creates the most difficulty for families.

At Cheever Law, we make the process straightforward:

1. Clarifying your assets and goals. We’ll help you understand what you own, who depends on you, and what would happen if something occurred today.
2. Making informed choices. Together, we’ll determine who should manage your affairs, who should inherit your assets, and how to protect what matters most to you.
3. Ensuring your plan works. We’ll support you in keeping your plan up to date as your life changes, ensuring all your assets are accounted for and none are lost to oversight.

Beyond the legal documents, we’ll help you:

• Document specific wishes for personal and sentimental items.
• Have meaningful conversations with your loved ones to avoid surprises.
• Record a Life & Legacy Interview, preserving your values, insights, and stories for future generations.
• Be there for your family when you can’t, guiding them through the process and ensuring your wishes are honored.

How We Help You Create Peace of Mind

At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.

To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.