Copyright Michael V. riley & Associates
HOW IS AN ESTATE PLAN CREATED?
How many times have you heard the old saying "time waits for no man (or woman)"? As time flies by, like the counter above, many people talk about creating an estate plan but never get the job done. While it is not difficult to create an effective estate plan, IT WON'T HAPPEN ON ITS OWN. Here are the typical steps taken in the creation of an effective, cost saving estate plan:
FIRST: A basic list of the various assets you own should be created. You can simply list your assets on a blank piece of paper and show approximately what you think each asset is worth. You DO NOT have to list exact values for your property but your estimate should be reasonably accurate.
SECOND: You and a qualified estate planning attorney with several years of experience in both trust preparation and administration matters should review your list of assets to determine how they are owned (jointly with your spouse, jointly with someone else, only by you, in a trust, etc.).
THIRD: In a meeting with a qualified estate planning attorney, you can discuss the various planning options available to you the advantages/disadvantages of each.
FOURTH: When you have decided on the appropriate plan for your needs, drafts of the documents are prepared by the attorney and reviewed on a face-to-face basis with you by that attorney. The attorney will explain the intent of the various documents and give you the opportunity to take the documents home with you for further review.
FIFTH: After you have completed your review of the documents, had any questions answered and, if required, had the documents revised, the attorney will meet with you for the purpose of signing the documents.
SIXTH: If a trust portfolio is used, after all of the documents are signed, your assets will need to be transferred into the name of your trust. Unless this is done, assets which are not placed in the trust will have to be taken through the probate process. The estate planning attorney or a qualified financial planner can assist you in this process. If a Will is used instead of a Trust, the title to your assets will usually remain unchanged.
SEVENTH: If your family circumstances change or if your thoughts about the distribution of assets change, you can have the estate planning documents modified whenever necessary. The estate planning attorney who prepared the documents can assist you in this relatively simple and inexpensive process.
REMEMBER, IF YOU LET "ANALYSIS PARALYSIS" TAKE OVER, AND DO NOT MAKE A LEGALLY CORRECT ESTATE PLAN, STATE LAW WILL DETERMINE HOW YOUR ASSETS ARE DISTRIBUTED AT DEATH.
How many times have you heard the old saying "time waits for no man (or woman)"? As time flies by, like the counter above, many people talk about creating an estate plan but never get the job done. While it is not difficult to create an effective estate plan, IT WON'T HAPPEN ON ITS OWN. Here are the typical steps taken in the creation of an effective, cost saving estate plan:
FIRST: A basic list of the various assets you own should be created. You can simply list your assets on a blank piece of paper and show approximately what you think each asset is worth. You DO NOT have to list exact values for your property but your estimate should be reasonably accurate.
SECOND: You and a qualified estate planning attorney with several years of experience in both trust preparation and administration matters should review your list of assets to determine how they are owned (jointly with your spouse, jointly with someone else, only by you, in a trust, etc.).
THIRD: In a meeting with a qualified estate planning attorney, you can discuss the various planning options available to you the advantages/disadvantages of each.
FOURTH: When you have decided on the appropriate plan for your needs, drafts of the documents are prepared by the attorney and reviewed on a face-to-face basis with you by that attorney. The attorney will explain the intent of the various documents and give you the opportunity to take the documents home with you for further review.
FIFTH: After you have completed your review of the documents, had any questions answered and, if required, had the documents revised, the attorney will meet with you for the purpose of signing the documents.
SIXTH: If a trust portfolio is used, after all of the documents are signed, your assets will need to be transferred into the name of your trust. Unless this is done, assets which are not placed in the trust will have to be taken through the probate process. The estate planning attorney or a qualified financial planner can assist you in this process. If a Will is used instead of a Trust, the title to your assets will usually remain unchanged.
SEVENTH: If your family circumstances change or if your thoughts about the distribution of assets change, you can have the estate planning documents modified whenever necessary. The estate planning attorney who prepared the documents can assist you in this relatively simple and inexpensive process.
REMEMBER, IF YOU LET "ANALYSIS PARALYSIS" TAKE OVER, AND DO NOT MAKE A LEGALLY CORRECT ESTATE PLAN, STATE LAW WILL DETERMINE HOW YOUR ASSETS ARE DISTRIBUTED AT DEATH.
