Estate planning is a necessary but often overlooked aspect of financial management. At Neuberger, Griggs, Sweet & Froehle LLP, we aim to demystify estate planning and make it accessible for everyone in the areas we serve, specifically Watertown, Columbus, and Lake Mills. This guide aims to walk you through the basics, helping you build a solid foundation to protect your family’s future.
What Is Estate Planning?
Estate planning is creating an in-depth plan for managing your assets during your lifetime and how to distribute them after your death. It includes different legal documents such as trusts, wills, powers of attorney, or health care directives. Contrary to common belief, it is not just for the wealthy; anyone with assets, children, or specific wishes about their care can benefit from a well-thought-out estate plan.
Why Is Estate Planning Important?
A comprehensive estate plan offers peace of mind to you and your family, knowing that your wishes will be honored and your loved ones will be protected when you are gone. As such, estate planning should be treated as an ongoing process rather than a one-time task. Life events such as a birth or death of a family member, marriage, divorce, or sudden changes in wealth are always good opportunities to revisit and potentially revise your estate plan.
Key Components of Estate Planning
Wills
Your Will is the official document that outlines your wishes in regard to the care of any minor children you may have and the distribution of your assets. It names a Personal Representative, typically a close family member or friend, to manage your estate through the probate process. Without a Will, state laws dictate who inherits your assets, which might not align with your desires.
Trusts
Trusts are versatile tools in Estate Planning that provide more control over asset distribution. A Trust involves a trustee, which is a person or entity that manages the assets or property for the benefit of beneficiaries. There are different types of Trusts, including:
- Revocable Trusts: These trusts can be changed or revoked at any time by the Grantor (owner of the assets) during their lifetime.
- Irrevocable Trusts: Once established, these cannot be changed without the beneficiary’s consent. These typically offer benefits like asset protection and tax reduction.
Powers of Attorney
A durable power of attorney (POA) for finances allows you to choose someone you trust to oversee and manage your financial affairs if you become incapacitated. Similarly, a healthcare power of attorney designates a person to make medical decisions on your behalf.
Health Care Directives
Also known as living wills, health care directives are documents that specify your preferences for medical treatment if you are ever unable to communicate them yourself. This ensures your medical care aligns with your values and desires.
Steps to Start Your Estate Plan
1. Evaluate Your Assets
Begin by making a comprehensive list of your assets, including real estate, bank accounts, investments, retirement accounts, life insurance policies, and personal property. Knowing what you have is the first step in determining how to distribute it.
2. Define Your Goals
What do you want to achieve with your estate plan? Common goals include providing for your family, minimizing taxes, avoiding probate, and supporting charitable causes. Clear goals will guide your decisions.
3. Choose Your Personal Representatives and Trustees
Select trustworthy individuals to carry out your wishes. A personal representative manages your will, while a trustee oversees your trust. Ensure they understand their responsibilities and are willing to commit to the role.
4. Consult an Estate Planning Attorney
Consulting an experienced estate planning attorney ensures your plan is legally sound and air-tight. At Neuberger, Griggs, Sweet & Froehle LLP, our attorneys have over 150 years of combined legal experience in navigating the complexities of Estate Planning in our Watertown, Columbus, and Lake Mills offices.
5. Formalize and Review Regularly
Once your plan is in place, formalize it with the appropriate legal documents. Regularly review and update your estate plan with your lawyer to reflect any important changes in your life.
Common Misconceptions About Estate Planning
Estate Planning Is Only for the Wealthy
Regardless of wealth, everyone can benefit from estate planning. It ensures your wishes are honored and reduces the mental and financial burden on your loved ones during difficult times.
It’s a One-Time Task
Estate planning is a dynamic process that should evolve with your life circumstances. Regularly reviewing your plan ensures that it remains relevant and effective as the years pass.
All Assets Go Through Probate
Not all assets go through probate. Typically, trusts, payable-on-death accounts, and jointly owned property can bypass this process, offering a quicker, private distribution.
Benefits of a Comprehensive Estate Plan
Peace of Mind
Knowing your affairs are in order provides immense relief. Your loved ones won’t have to guess your wishes or navigate legal complexities during an already challenging time.
Protection for Your Children
If you have minor children, a will allows you to designate guardians. This ensures their care aligns with your values and preferences.
Smooth Business Continuity
For business owners, a succession plan ensures the smooth transition of your business, protecting your employees and legacy.
Tax Efficiency
Thoughtful estate planning can minimize the tax burden on your estate, preserving more wealth for your beneficiaries.
How Neuberger, Griggs, Sweet & Froehle LLP Can Help
Since 1922, our team at Neuberger, Griggs, Sweet & Froehle LLP has been dedicated to providing quality legal services to the communities of Watertown, Columbus, and Lake Mills in an efficient and ethically responsible manner. Our team offers a wide range of estate planning services, including:
- Durable Power of Attorney for Finances and Property
- Various Types of Trusts (Irrevocable, Revocable, Special Needs, Medicaid, etc.)
- Marital Property Agreements (Pre-nuptial and Post-nuptial)
- Family Limited Partnerships and Limited Liability Companies
Our experience and knowledge extend beyond estate planning to areas like real estate, elder law, and corporate law, ensuring comprehensive support for all your needs.
Speak to an Estate Planning Attorney in One of Our Three Locations – Watertown, Columbus, or Lake Mills
Estate planning is an ongoing process vital for securing your legacy and protecting your loved ones. Schedule your consultation today and gain the peace of mind that comes with knowing your future is planned and protected.
We have three (3) conveniently located offices in Watertown, Columbus, and Lake Mills, or we can connect via phone at (920) 261-1630. During the consultation, we’ll discuss your personal situation, ultimate goals, wishes, and needs.
Once we create your proposed plan, we can formalize it with the necessary documents. We’re always available to review and adjust your plan as your circumstances change.