Do I need an estate plan?
As estate planning attorneys, of course our answer to this question is going to be “YES!” While we believe everyone needs an estate plan, it’s important to know that estate plans are not “one-size fits all.” The documents that make up an estate plan are varied. You might need a Will, a Trust, a Power of Attorney, a Health Care Directive, appointment of guardian for minor children, a combination of these or something else we haven’t listed here. What’s important is putting something in place now so that you can save your loved ones a headache later.
I’m only in my 20s (or 30s, 40s, 50s, 60s…) so why do I need an estate plan?
Estate planning is so much more than addressing what would happen when you die – it’s a tool that helps provide some planning and security for all of life’s events. While people commonly think of estate planning in their elder-years, we think anyone over 18 should have some basic estate planning documents – particularly a power of attorney and health care directive. Other estate plan documents that are commonly overlooked include: cohabitation agreements, antenuptial agreements and beneficiary designations.
What could happen if I don’t have a Will?
If you were to pass away without a Will, your estate would be distributed through the laws of intestacy of the state you were a resident of when you passed away. It’s important to know that a Will does NOT avoid probate; it simply provides instructions to the probate court so that your assets can be distributed pursuant to your wishes rather than the probate code. If you’re curious about what the intestate laws of succession are for Minnesota, give us a call. We’ll walk you through all of it.
What could happen if I do not have a Power of Attorney?
A Power of Attorney (POA) appoints someone to make financial decisions for you. If you are unable to complete a financial transaction due to incapacity (or even inconvenience) a duly appointed Attorney-in-Fact under your Power of Attorney can step in your shoes. Without an Attorney-in-Fact a conservator may need to be appointed by the court to manage your affairs and complete your financial transactions if you are unable to do so. Conservatorships can be costly and often require annual accountings and reports to the court. A properly drafted and executed POA can help you avoid unnecessary court involvement, saving you and your loved one’s time and money.
What’s the worst that could happen if I do not have a Health Care Directive?
A Health Care Directive (HCD) appoints someone to make health care decisions for you if you are in a position where you can’t make them yourself. If you are unable to effectively communicate, a duly appointed Health Care Agent can step in your shoes to advocate and authorize medical care on your behalf. Without a Health Care Directive (also called a “Living Will” or “Power of Attorney for Medical Decisions”) a guardian may need to be appointed by the court so that someone can have the legal authority to make health care decisions for you. Guardianship proceedings can be costly and require annual reports to the court. A properly drafted and executed HCD can help you avoid unnecessary court involvement saving you and your loved one’s time and money – plus it can ensure that your wishes and desires are written down, so that if a loved one needs to act on your behalf, they know exactly what you would want.
I don’t have to worry about probate, I have a will!
A Will does NOT avoid probate; it simply provides instructions to the probate court so that your assets can be distributed pursuant to your wishes rather than the probate code. Wills are where you can appoint a personal representative (aka executor) and nominate guardians for your minor children.
Do I need a Trust?
Trusts are a great estate planning tool for many people but what works for someone else may not be the best solution for you. Simply put, trusts are a separate entity that can be established either during your lifetime, or after you passed away, to hold assets and distribute them when certain conditions are met. A key feature of probates that make them a great tool for many of our clients are that when properly funded, that can avoid probate. There are countless types of trusts – each with their own special features that can help reduce your tax liability, preserve and protect an inheritance for a beneficiary and ensure your estate is managed and distributed exactly as you intended.
If I have a Trust, do I need a Will?
Trusts often include provisions for testamentary distributions (aka distributing the trust assets upon your death) much like a Will does, but not every trust handles this nor does every trust hold all of your assets. If you choose to have a trust, it is important to make sure the trust is properly funded and that the terms provide for exactly what you want. With a standard Revocable Trust (one of our most common estate planning tools) a Pour Over Will is included with every trust we draft. A Pour-Over Will is a will that directs all of your assets to your Trust – this helps ensure that upon your death, any asset you may own, whether or not it was put in trust, will be distributed pursuant to the terms of your trust.
How much do you charge?
Markve & Zweifel, PLLC offers flat-fee pricing for most of our estate plan documents as well as offering package deals for our most common estate planning tools. More complex planning may be billed at our normal hourly rates but we always let our clients know ahead of time if their plan does not fit within our standard fees/packages. Our fee schedule is always shared with clients at their FREE initial estate plan consultation. If you’d like to see our pricing, please complete our intake packet here and/or schedule a consultation.
If I have beneficiary designations on all of my accounts, do I need any other estate planning documents?
Beneficiary designations can be one of the simplest forms of estate planning. Beneficiary designations can direct where your assets should be paid out to upon your passing, and, if drafted properly, can avoid probate. A few downsides to using only beneficiary designations are: (1) beneficiary designations only go into effect once you’ve passed away – they do not provide for any incapacity planning, (2) beneficiary designations are not available for real estate interests, and (3) it can be difficult to plan for a successor beneficiary or a worst-case scenario if the named beneficiary predeceases you.
If you have a question that you’d like answered and it isn’t discussed above, feel free to ask it here.