During the COVID-19 pandemic, our attorney Darren Kennedy faced the loss of both his father and his father-in-law. Having prepared his own father's will years prior, Darren thought the process of transferring assets to his mother would be straightforward. However, when his mother suffered a stroke shortly before his father's passing, the situation became far more complicated. This deeply personal experience highlighted for Darren how even carefully prepared estate plans can fall short when life takes unexpected turns, underscoring the need for adaptable and comprehensive legal strategies. Read his full story here.
Estate Planning FAQ's
What is the difference between a will and a trust?
A will is a legal document that specifies how your assets will be distributed upon your death, whereas a trust is a legal entity that holds assets for the benefit of specific individuals. Trusts can be effective during your lifetime, allowing for management of assets, while wills take effect only after death. Trusts also help avoid probate, whereas wills typically go through the probate process.
How do I create a valid will?
To create a valid will, you must be of legal age and sound mind, and the will should be written, signed, and witnessed according to your state's laws. It typically includes your intentions for asset distribution, the appointment of an executor, and guardianship for minor children if applicable. It's advisable to consult with an attorney to ensure compliance with legal requirements.
What happens if I die without a will?
Dying without a will means your assets will be distributed according to state intestacy laws, which may not align with your wishes. Typically, assets will go to your closest relatives, and the court will appoint an administrator to manage the estate. This can lead to disputes among family members and prolonged legal proceedings.
Do I need a living will?
A living will, also known as an advance directive, is essential if you want to specify your wishes regarding medical treatment in case you're unable to communicate them yourself. It can guide your healthcare providers and family in making decisions that align with your preferences. While it's not legally required, having one can provide peace of mind.
Who should I name as executor of my estate?
Choose an executor who is trustworthy, organized, and capable of managing financial and legal matters. This person may or may not be an heir or a family member, but they should be someone who understands your wishes and is willing to take on the responsibilities involved in settling your estate. It's also wise to have a backup executor in case your primary choice is unable or unwilling to serve.
What is a living trust, and how does it differ from a will?
A living trust is a legal arrangement that allows you to transfer assets into a trust during your lifetime, which can then be managed by a trustee for your benefit or the benefit of others. Unlike a will, a living trust does not go through probate upon your death, allowing for quicker and more private distribution of assets. Additionally, a living trust can provide management of assets if you become incapacitated.
Can a trust help avoid probate?
Yes, one of the primary benefits of a trust is that it can help avoid probate. Assets held in a trust pass directly to beneficiaries without going through the probate process, saving time and potentially reducing legal fees. Establishing a trust can streamline the transfer of assets and maintain privacy regarding your estate.
What are the advantages of having a trust?
Trusts offer several advantages, including avoiding probate, providing privacy, and potentially reducing estate taxes. They can also offer greater control over asset distribution and management, allowing you to set specific terms for how and when beneficiaries receive their inheritance. Trusts can also protect assets from creditors and ensure that your wishes are followed.
What is power of attorney?
A power of attorney (POA) is a legal document that grants one person (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal) in legal or financial matters. The powers granted can be broad or limited, depending on the terms outlined in the document. A POA can be used for various purposes, such as managing finances, making healthcare decisions, or handling real estate transactions .
What is durable power of attorney?
A durable power of attorney is a specific type of POA that remains effective even if the principal becomes incapacitated or unable to make decisions. This ensures that the agent can continue to manage the principal's affairs without interruption. The durability feature is crucial for planning for situations where the principal may not be able to communicate their wishes.
Can I change my estate plan after it's created?
Yes, you can and should review and update your estate plan regularly, especially after major life changes such as marriage, divorce, or the birth of a child. Changes in financial circumstances or laws may also necessitate updates. Most estate planning documents can be amended or revoked as needed, but it's crucial to follow legal procedures to ensure validity.
How often should I update my will or trust?
You should review and potentially update your will or trust every few years or after significant life changes, such as marriage, divorce, the birth of children, or substantial changes in your financial situation. Regular reviews ensure that your estate plan aligns with your current wishes and the law. Consulting with an estate planning attorney can help determine when updates are necessary. Resolutions Law Firm offers complementary updates to your estate plan every 3 years, at no additional charge.
What Our Clients Say
"Darren is always knowledgeable in the law. He helped me with my will. Work was outstanding and done very timely at a low cost to me. He is a godly man, polite, and very committed to helping his clients to the best of his ability." --Andy L.
