No one enjoys contemplating their own mortality and the prospect of leaving their loved ones behind. For this reason, many people put off estate planning, since conversations about end-of-life arrangements can feel depressing or upsetting. However, estate planning is actually a very constructive step to take in order to protect your family and assets after you pass away.
Your estate encompasses everything you own, including your vehicle, home, bank account, furniture, and even the clothes you have on. When you meet with an estate attorney, you will collaborate to create a plan that clearly specifies who will inherit which parts of your estate after your death. Without a will or other explicit instructions, decisions about your estate and its distribution will be decided in probate court. With this in mind, it becomes clear how having a will in place will safeguard your family after you are gone.
If you are looking to begin estate planning in Boise, contact the team at Gravis Law to assist you in getting your affairs in order. Our seasoned attorneys specialize in estate planning, with a focus on trust- and will-based planning. We understand that discussing post-mortem arrangements can be difficult and emotional, which is why we approach every meeting with the utmost sensitivity and professionalism. Below, we will outline precisely what estate planning entails and why it is so important for you and your loved ones.
Estate planning refers to the process where people (typically working with a lawyer) provide explicit instructions for how their estate should be managed and distributed after they die. Planning also seeks to minimize gift, estate, generation skipping transfer and income taxes for the friends and family receiving part of the estate. When meeting with an estate lawyer, the client decides on their specific goals, which determines the complexity of their estate plan. Estate planning covers the will, trusts, beneficiary designations, property ownership, gifts and powers of attorney. An estate plan resolves legal issues that can come up after your passing. These include questions like: What property do you own? How will your assets be distributed and to whom? Who will be the legal guardian of your minor children? What are your wishes regarding funeral arrangements? How much will your beneficiaries need to pay to transfer property ownership?
When you choose to team with the attorneys at Gravis Law, your estate plan will also:
- Establish care instructions in the event you become disabled before you die
- Include life insurance, disability income and long-term care insurance
- Name the legal guardian for any children who are minors
- Provide for the transfer of your business
- Lay out how you would like your moral values passed on
- Minimize taxes and other legal fees
What is a will?
A will is a legal document drafted with the help of your estate planning lawyer that specifies how you want your possessions distributed after you pass away. Wills can also name guardians for any minor children you have. Once the will is written down and signed by you and a witness, your wishes will be carried out exactly as you directed. At Capital Law, we suggest having annual meetings to review your will to ensure it is current. Updates to your will may be needed if estate laws have changed, if you've acquired new assets, or if your will no longer accomplishes your estate planning goals.
What is a trust?
A trust is similar to a will in that it also outlines how you want your property managed if you become disabled or die. A trust involves three parties. The grantor, also called the trustor or trust maker, works with an estate planning attorney to create a trust agreement. The trust names a trustee, who is responsible for managing the property transferred into the trust by the grantor, as directed in the trust. The final party is the beneficiary, who receives the benefits of the property put into the trust.
What are the differences between a will and a trust?
Both a will and a trust outline how you want your property distributed after you pass away. However, unlike a living trust, a will does not avoid the probate process in your state. Probate is a legal procedure where the court verifies that your will is your final wishes. Though the exact probate process differs by location, it is typically very expensive. Between lawyer fees, court costs, and executor fees, there is a substantial monetary cost. Additionally, many probate files are public - meaning anyone can be present, even loved ones not named in the will. This gives them a chance to pursue a share of your estate.
On the other hand, a trust can avoid probate at your death, making it a more popular option for families. With a trust, the court will never control your assets when you die. Trusts are also valid in every state, and you can change them at any point while alive. One major difference between a will and trust is that a trust can "live on" after you pass away. When you die, your property can stay in your trust, managed by the trustee. For instance, if you're leaving money to a loved one but don't want them to inherit for several years, that money remains "in" your trust until the right time. Your living trust can still provide for your loved ones for many years after you're gone.
Who should have a will or trust?
Everyone should have an estate plan in place. There are many misconceptions about estate planning, but one of the biggest is that it's only for older, wealthy people. This isn't true - nearly everyone has an estate, made up of all your property and assets like your home, possessions, bank accounts and investments. No matter your age or income, you likely want to decide who inherits your estate when you pass away. Without an estate plan, you can't ensure your loved ones receive part of your estate.
If you have minor children, you'll also want to appoint a guardian for them in your will in case you pass away while they are young. These are very important decisions to make ahead of time through proper estate planning. Your will provides the instructions for who inherits your estate, what they receive, and when. If you don't make a will, the court will make these personal decisions for you.
What happens if you don’t have an estate plan in order?
If you die or become disabled without an estate plan, the court takes over all the critical choices you should have made previously. If disabled, the court will assign someone to handle your affairs since you can't. Your family won't have control - the court's appointee will make all decisions about your assets. If you pass away without a plan, your estate is distributed based on state probate laws, which may only give a small fraction to your spouse and children. If children are minors, the court controls their inheritance until they come of age.
How can I be proactive about my planning?
To begin, you can call the expert attorneys at Gravis Law today! As your top provider of estate planning services in Boise, we assist our clients in creating comprehensive estate plans that clearly lay out their wishes for the end of life. If you do not reside in Idaho, we suggest contacting a qualified estate planning lawyer near you. Losing someone close is already difficult, so you certainly don't want to leave your family and friends struggling to figure out the details that should be outlined in a will. Give yourself peace of mind knowing everything will be taken care of, exactly as you want, after you pass away. It's never too early to start estate planning, so connect with the Gravis Law team in Boise. Get in touch with us to schedule an appointment and learn more about our extensive legal services.
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