Frequently Asked Questions
Why do you need an Estate Plan?
An Estate Plan is a set of documents that will govern how your property, accounts, and possessions are all distributed after you die. The purpose of these documents is to make the decisions for yourself. If you do not create an estate plan, the distribution of your estate is going to have to go through the Probate Court. The process of probating an estate is costly and time-consuming. Additionally, the distribution of your estate will follow predetermined guidelines as determined by the law and may not mirror your wishes. The only way to ensure that your wishes are honored is to implement an estate plan.
Why do you need to create a Business Entity?
Limited Liability. The purpose of creating a business entity under which a person manages and operates their business is to limit the liability that they will be personally responsible in the event the business has a debt or legal liability. Having properly formed and maintained a business entity prevents creditors from being able to attack your personal assets to satisfy claims and instead are required to look solely to the business entity.
What makes up my Estate?
When someone passes away, their estate consists of cash and bank accounts, real estate, life insurance, retirement accounts, etc. All these assets collectively make up someone’s estate. This is important when we discuss tax planning and avoiding the estate tax or “death tax” as most know of it.
Is Estate Planning really important?
Currently, the estate tax threshold is over $12 Million. Considering this does not impact nearly any estate, why would we worry about it? This number is subject to change and, without a doubt, will change multiple times as different federal administrations have their time in charge. Preparing now for the possibility of its impact later is the foundation of estate planning.
To some, this may not be important as they will be gone and why they would care. To others, this is of great importance as it guides the passing of the wealth and assets you have accumulated to those whom you want. You are taking actions now that have the goal of easing the stress and costs of handling the estate after you are gone.
In addition to drafting a will or trust, we prepare advance health care directives and durable powers of attorney that are used while you are alive and govern your wishes as relates to medical decisions in the situation you are unable to make your own decisions.