Frequently Asked Questions

Estate planning is the process of organizing your assets to ensure that they are distributed according to your wishes after you pass away. It involves creating legal documents that outline how your assets will be distributed, who will manage your affairs after you’re gone, and who will make medical decisions on your behalf if you are unable to do so.

An estate planning attorney will help navigate these complexities, creating a customized plan for your unique circumstances, designed to meet your personal and financial goals.

Below are some common reasons for needing an estate planning attorney:

• To ensure that your assets are distributed according to your wishes after you pass away.

• To minimize the taxes that your heirs will have to pay on your estate.

• To provide for your loved ones after you pass away.

• To ensure that your healthcare wishes are respected, should you become incapacitated.

• To avoid probate, which can be a lengthy and expensive process.

• To protect your assets from creditors and lawsuits.

• To create a plan for passing down your business to future generations.

Trust and estate planning starts at $2,500, while trust administration and trustee coaching have an hourly rate of $250.

When you meet with your estate planning attorney for the first time, it's helpful to have documents and relevant estate information on hand. Every situation is different, but below is a list of common items you should consider bringing:

• A list of your assets.
This includes real estate, investment accounts, retirement accounts, life insurance policies, savings accounts, etc.

• Information about your family.
This can include the names and contact information for your spouse, children, and other beneficiaries.

• Existing estate planning documents.
If you have a will, trust, power of attorney, or advance directive, bring them with you so your attorney can review them.

• Tax returns.
Review your tax returns helps determine the best estate planning strategies for your unique situation.

• Business documents.
Do you own a business? Bring any relevant documents, like partnership agreements, articles of incorporation, or operating agreements.

• A list of questions.
Write down any questions or concerns you have about the estate planning process beforehand, so you’re sure to get all the answers you need to make an informed decision.

Estate planning strategies varies greatly depending on your unique circumstances and goals. However, here are some common estate planning strategies that your attorney may recommend:

• Wills
A will is a legal document that outlines how your assets will be distributed after you pass away. It allows you to specify which beneficiaries will receive your assets, and can also name an executor to manage your estate.

• Trusts
A trust is a legal arrangement in which you transfer assets to a trustee to manage for the benefit of your beneficiaries. There are many types of trusts, including revocable trusts, irrevocable trusts, and special needs trusts. Trusts can be used to avoid probate, minimize taxes, and provide for loved ones who may need special care or protection.

• Powers of Attorney
A power of attorney is a legal document that gives someone the authority to act on your behalf in financial or legal matters. This can be useful if you become incapacitated and are unable to make decisions for yourself.

• Advance Directives
Advance directives are legal documents that specify your wishes regarding medical treatment if you become unable to make decisions for yourself. This can include a living will, which outlines your wishes for end-of-life care, and a healthcare proxy, which designates someone to make medical decisions for you if you are unable to do so.

• Gifting
Gifting is the practice of giving away assets during your lifetime. This can be used to reduce the size of your estate and minimize taxes.

• Life Insurance
Life insurance can be used as part of an estate planning strategy to provide for your loved ones after you pass away.

• Business Succession Planning
If you own a business, it's important to have a plan in place for passing the business on to future generations. This can include creating a buy-sell agreement, transferring ownership to family members, or selling the business outright.

A trust is a legal arrangement in which you transfer assets to a trustee to manage for the benefit of your beneficiaries. There are many types of trusts, including revocable trusts, irrevocable trusts, and special needs trusts. Trusts can be used to avoid probate, minimize taxes, and provide for loved ones who may need special care or protection. Consult with Karla Hunter to determine if a trust is right for you.

A will is a legal document that outlines how your assets will be distributed after you pass away. It allows you to specify which beneficiaries will receive your assets, and can also name an executor to manage your estate. Consult with Karla Hunter to determine if a will is right for you.

While there is no one-size-fits-all answer to how often you should review your estate plan, here are some excellent reasons to prompt a review:

• Changes in your family or personal circumstances
If you get married, divorced, have a child, or experience other significant life changes, it's important to review your estate plan to ensure that it still reflects your wishes and provides for your loved ones.

• Significant changes to your financial situation
Aquiring or selling assets or other significant shift in your financial situation, check with your attorney to update your estate plan.

• Time
As a general rule of thumb, it's a good idea to review your estate plan at least every five years.

If you don't have an estate plan, your assets will be distributed according to state law upon your death, meaning they might go to people you would not have chosen. If you have no living relatives, your assets may go to the state. Failing to have an estate plan can also result in higher taxes and legal fees.

Should you pass without a will, your young children will have a guardian appointed by the court. This may not be the person you would have chosen, and may not be someone who shares your values or parenting style.

Yes, one of the primary goals of estate planning is to minimize the taxes that will be owed by your estate and your heirs. Attorneys do this by creating trusts, planned giving, succession planning, and other estate planning strategies.

Yes, planning for incapacity is an important part of any estate plan, as it ensures that your affairs will be managed according to your wishes if you become unable to make decisions for yourself.

Some ways that your estate planning attorney will help you plan for incapacity may include:

• Durable Power of Attorney
Durable power of attorney is a legal document that allows you to appoint someone to manage your financial affairs if you become incapacitated.

• Healthcare Power of Attorney
Healthcare power of attorney is a legal document that allows you to appoint someone to make healthcare decisions on your behalf if you become incapacitated.

• Living Will
A living will is a legal document that specifies your wishes for end-of-life care if you become incapacitated and are unable to communicate your wishes.

A trust is a legal arrangement where one person, called the trustor or grantor, transfers assets to another person or institution, called the trustee, who manages the assets for the benefit of one or more beneficiaries. There are two primary types of trusts: revocable and irrevocable.

A revocable trust, also known as a living trust, is a trust that can be modified or revoked by the trustor during their lifetime. With a revocable trust, the trustor retains control over the assets in the trust and can make changes to the trust at any time. For example, the trustor can add or remove assets from the trust, change the beneficiaries, or change the terms of the trust.

The main advantage of a revocable trust is that it allows the trustor to maintain control over their assets during their lifetime, while also providing for their beneficiaries after their death. In addition, a revocable trust can help to avoid probate, which is the legal process by which a person's assets are distributed after their death.

An irrevocable trust, on the other hand, is a trust that cannot be modified or revoked by the trustor once it has been established. Once the assets have been transferred to the trust, the trustor no longer has control over them. The trustee is responsible for managing the assets and distributing them to the beneficiaries according to the terms of the trust.

The main advantage of an irrevocable trust is that it provides greater protection for the assets in the trust, as they are no longer considered to be owned by the trustor. This can be useful for estate planning purposes, as it can help to minimize estate taxes and protect assets from creditors.

Overall, the choice between a revocable and an irrevocable trust depends on your specific goals and circumstances. An experienced estate planning attorney can help you determine which type of trust is right for you.

Yes! You can (and should!) change your estate plan as your circumstances change.

An executor is the person responsible for managing your estate after you die. The executor's duties typically include:

• Filing your will with the probate court.

• Gathering your assets and taking an inventory.

• Paying your debts and taxes.

• Distributing your assets to your beneficiaries according to the terms of your will.

Choosing an executor is an important decision, as this person will have a significant amount of responsibility. Here are some factors to consider when choosing an executor:

• Trustworthiness: You will want to choose someone who is trustworthy and responsible.

• Availability: The executor will need to be available to manage your estate, so it's important to choose someone who has the time and willingness to take on this responsibility.

• Financial acumen: The executor will need to be able to manage your assets and finances, so it's important to choose someone who has a good understanding of financial matters.

• Location: The executor will need to be able to travel to your location and manage your estate in your home state or country.

• Age: It's a good idea to choose someone who is likely to outlive you, as the executor's duties may take several years to complete.

You can choose anyone you want to be your executor, including a family member, friend, or professional fiduciary, but it’s a good idea to talk to the person you want to name as your executor to make sure they are willing to take on this responsibility.

Whether or not your business should be in your trust depends on your specific circumstances and goals. In some cases, it can be beneficial to transfer ownership of a business to a trust, while in other cases it may not be necessary or desirable.

In general, if your business is a significant asset and you want to ensure that it passes to your heirs according to your wishes, transferring ownership to a trust can be a good option. Consult with an experienced estate planning attorney who can help you evaluate the pros and cons and determine the best course of action for your specific circumstances.