Who Needs Estate Planning?

Some people think that estate planning is only for the wealthiest of families, or that it deals solely with the distribution of assets after a person passes away. The truth is that everyone can benefit from having an estate plan, and that proper planning addresses important issues during one’s lifetime.

Consider this scenario: without an estate plan in place, who would make financial and medical decisions for you if you became incapacitated? Rather than someone you know and trust, it could end up being someone appointed by the court, possibly someone you wouldn't want making such important decisions. The legal processes involved, like guardianship and conservatorship, are not only cumbersome and expensive but also emotionally taxing for your loved ones.

What Does It Do?

Above is just the tip of the iceberg. A well-crafted estate plan can accomplish much more. At Biddinger, Schrot & Rolando, PC, we're equipped with the legal expertise to tailor a plan to your specific needs and goals.

For instance, it can grant you full control over your assets both during your lifetime and after your passing. It can ensure that your children are raised according to your wishes if something were to happen to you and your spouse. It can dictate precisely who inherits what and in what manner, shielding your assets from divorce, lawsuits, creditors, and other threats.

Moreover, it's a means of passing on not just material wealth but also your values, work ethic, and sense of responsibility to your heirs. And let's not forget about the tax benefits—a well-designed plan can help minimize income, gift, estate, and other taxes.

By avoiding probate, your financial affairs and family information remain private, and your loved ones' inheritances are protected. Furthermore, it allows you to leave behind a lasting legacy.

What Is In It? 

In an estate plan, several key documents are commonly included to ensure comprehensive coverage of your wishes and assets. Here are just a few of the documents we use:

1. Last Will and Testament (Will): This document outlines how you want your assets distributed after your death. It can also nominate guardians for minor children and specify other final wishes. While we do not recommend this to be a stand-alone document, we do draft one with every estate plan.

2. Revocable Living Trust: This legal entity holds your assets during your lifetime and can provide instructions for their distribution after your death. A living trust can help avoid probate, maintain privacy, and provide for efficient asset management. (See Trusts)

3. Durable Power of Attorney for Finances: This document designates someone to manage your financial affairs if you become incapacitated. They can pay bills, manage investments, and handle other financial matters on your behalf. (See Power of Attorney)

4. Advance Healthcare Directive (Healthcare Proxy or Medical Power of Attorney): This document appoints someone to make medical decisions for you if you are unable to do so. It also outlines your preferences for medical treatment, end-of-life care, and organ donation. (See Power of Attorney)

5. Beneficiary Designations: These are forms that specify who will receive certain assets upon your death, such as life insurance policies, retirement accounts, and payable-on-death (POD) or transfer-on-death (TOD) accounts.

6. Guardianship Designations: If you have minor children, you can designate guardians in your estate plan to ensure they are cared for by people you trust in the event of your incapacity or death. (See Guardianships/Conservatorships)

These documents work together to protect your interests, provide for your loved ones, and ensure that your wishes are carried out in the event of your incapacity or death. It's essential to review and update your estate plan regularly to reflect any changes in your life circumstances or goals. Consulting with an experienced estate planning attorney can help ensure that your plan is comprehensive and legally valid.

We take a personal approach to helping our clients achieve goals such as these. We will devote the time to gain a thorough understanding of your needs, goals, and family dynamics. Then, we will design and implement a customized estate plan to achieve all of your goals.

We believe that the best plans are the result of collaboration, not just with you and your family but also with your accountant, insurance representative, financial planner, and other key advisors.

To learn more about how we can protect you, your loved ones, and your hard-earned assets, we invite you to attend one of our free workshops or to schedule a consultation with one of our Thumb of Michigan estate planning attorneys. We welcome the opportunity to meet you in person.