An estate planning lawyer, also known as an estate planning attorney, is a certified professional lawyer. They have expertise in estate planning. These lawyers’ primary purpose is to assist their clients in drafting legal documents like wills and trusts, resolving their client’s queries and doubts, and giving them valuable advice. They also help them make an appropriate estate plan suitable to their requirements with the four most crucial estate planning factors.
The services of an estate planning attorney go far beyond just assisting you in creating a will or trust. Hiring an estate lawyer can help lower estate and inheritance taxes. Even save your estate and its beneficiaries money in the long run. The advantages exceed the costs. For example, by reducing your tax burden, you may ensure to pay more money for your children’s and grandchildren’s education, along with their medical care and other fees.
Four most crucial estate planning factors
The four most crucial estate planning factors directed by an estate planning lawyer are:
1. Will for estate planning
A will is a formal statement of a person’s intentions for the distribution of their property after death. A will is considered as 1 of the essential estate planning factors for the following reasons:
- A person can be precise about who receives their assets with the aid of a will. Who gets what and how much can also be decided through this.
- A will enables people to keep assets out of the hands of those they don’t want to be their owners.
- People can decide who will look after their kids while away. Without a will, the courts make this determination; nevertheless, a person might name a dependable guardian in a will.
- With a will, the assets will be accessible to the beneficiaries more quickly and easily.
- A will allows the person to make plans to reduce the tax burden on your estate. Additionally, they can make gifts and grants to charities, which might reduce their estate tax liability.
In a will, you specify who should inherit your possessions after your passing. You will designate an executor to carry out your instructions. Without a will, the state will take control and decide who will receive your assets. Therefore, hiring an estate planning attorney to draft your choice is essential.
Trust is another major factor that influences estate planning. It reduces estate and inheritance tax and prevents your assets from going through probate. A third party, or trustee, is designated in trust with the duty to manage the support for the benefit of one or more beneficiaries. Trusts can specify the precise date and distribution of the assets to the beneficiaries and can be established in various methods. Because trusts frequently avoid probate when compared to assets transferred through a will, your heirs may have quicker access to these assets.
Additionally, if the trust is irrevocable, it might not be considered part of your taxable estate, which could result in fewer taxes owing after your passing. Additionally, the assets of a trust might be able to pass without going through probate, saving time and money on court fees and possibly even estate taxes. Finally, the rules of faith allow you to choose when and to whom payments may be made; that’s why estate planning lawyers consider trust a significant factor in estate planning.
3. Power of Attorney-
A power of attorney, often known as a POA, is a legal document that gives the principal’s attorney-in-charge and other legal representatives the ability to act on their behalf. To work on behalf of the principal, the attorney in charge may have extensive or limited jurisdiction. On behalf of the principal, the representative may decide how the latter should be treated medically, financially, or in terms of property.
When a disease or incapacity renders the principal (the owner) incapable, a power of attorney takes effect. For example, the agent may act on the principal’s behalf if the principal cannot approve financial or legal transactions. A power of attorney expires when its author dies, revokes it, or has it declared invalid by a judge. A POA also passes when the owner divorces the spouse designated as the agent. The agent is no longer capable of performing the specified tasks. You don’t need to worry about a thing until the POA is valid.
4. Living will-
Living wills are legally enforceable documents that outline your preferences for medical treatment in case you become incapacitated. For example, suppose you are terminally sick, gravely injured, in a coma, experiencing late-stage dementia, or nearing your life’s end. In that case, advance directives can help doctors and caregivers make decisions. These advanced directives are not only for senior citizens.
All individuals should prepare these documents since no one knows what might happen the next second. By making preparations in advance, you can get the medical care you want, stop unnecessary suffering, and relieve family members of the burden of making decisions at challenging times. You also help to eliminate any doubt or disagreement about the choices you want others to complete in your place.
As per estate planning lawyers, the four most important factors of estate planning are wills, trusts, power of attorney, and a living will. These four are necessary, and every individual preparing an estate plan must have these.