What Are Your Goals Behind Creating An Estate Plan?
WHAT ARE YOUR GOALS BEHIND CREATING AN ESTATE PLAN?
When it comes to creating an estate plan, there is no "one size fits all" approach. Just as each individual is unique, so should their estate plan. An estate plan is not merely a legal document; it's a reflection of your values, priorities, and wishes for the future. As an estate planning attorney, I often tell my clients that we should design a plan for the next 2-5 years and hope that the same plan would work for subsequent years if they didn't make any changes. However, it's essential to recognize that life is dynamic, and circumstances can change. Therefore, ideally, everyone should revisit their estate plan every 2-3 years to ensure its continued relevance.
The very first step in creating a comprehensive estate plan is to identify your goals and wishes clearly. Start by asking yourself: What do you want to achieve with your estate plan? The answers to this question can vary significantly from person to person. Some common goals include:
1. Ensuring Specific Persons Inherit: One of the primary purposes of an estate plan is to dictate how your assets will be distributed after your passing. You may have specific individuals or organizations in mind that you want to benefit from your estate. Clearly defining who these beneficiaries are and how you want to distribute your assets among them is crucial.
2. Guardianship for Minor Children: If you have minor children, you likely want to ensure they are well taken care of in the event of your untimely passing. Designating a guardian for your children in your estate plan can provide you with peace of mind, knowing they will be in capable hands.
3. Asset Protection: Many clients express the desire to protect their assets, but it's essential to understand what exactly you are safeguarding them from. This is a question that often leaves people pondering, as they may not have a clear answer. Asset protection is a crucial aspect of estate planning that often ranks high on the list of priorities for many individuals. However, it is essential to have a clear understanding of the specific risks and challenges that warrant protection. Identifying potential threats is the first step in creating an effective asset protection plan. Potential risks can vary significantly based on individual circumstances, such as profession, business ownership, family dynamics, or potential creditors.
Once the risks are identified, your attorney can design a tailored asset protection strategy to address these concerns effectively. This might involve setting up various legal structures such as trusts, limited liability companies (LLCs), or other asset protection tools, depending on the specific needs and goals of the individual.
So, before approaching an estate planning attorney, consider the following questions:
1. Who should inherit your assets, and how do you want to distribute them? Are there specific gifts you wish to make?
2. Is a smooth transfer of assets to your beneficiaries important to you? Or, is asset protection more important to you? Are you willing to give away control of your assets to other people? Who are those people? What are your concerns and priorities regarding your estate?
3. Who do you trust to manage your assets if you are incapacitated or not alive? Who do you trust to take good care of your children?
4. Could there be any persons with disabilities inheriting from you?
Understanding your motivations for protecting your assets can help your estate planning attorney tailor the plan to address those specific concerns effectively.
Do you have more questions or need to chat with me? Visit my website -
https://myspeciallegalplanning.com/
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