Frequently Asked Questions About Estate Planning
Oct. 18, 2024
At Lewis & Van Sickle, LLC, we understand that estate planning can feel overwhelming. Many people have questions about how to protect their assets, make sure their wishes are honored, and provide for their loved ones. Unfortunately, according to AARP, over 60% of adult Americans haven’t created an estate plan. With over two decades of legal experience, attorney James E. Lewis is here to help.
Having appeared on behalf of clients in 25 Wisconsin counties and both Wisconsin Federal District Courts, Jim has dedicated his career to being a strong and compassionate advocate for those in need. Below are some of the most frequently asked questions about estate planning, along with insights that can help you manage this important process.
What Is Estate Planning?
Estate planning is the process of arranging for the management and distribution of your assets after your death. This comprehensive approach encompasses various legal documents, including wills, trusts, powers of attorney, and healthcare directives. A well-crafted estate plan goes beyond just asset distribution; it reflects your values and priorities, meaning that your wishes are honored even when you can no longer communicate them.
By planning ahead, you can help minimize potential taxes and expenses, allowing more of your wealth to benefit your loved ones. Moreover, effective estate planning can prevent family disputes and complications during an emotionally challenging time, providing peace of mind for both you and your family. It’s not just about what happens after you pass; it’s about securing your legacy and making sure that your family is cared for in the way you envision.
Why Is Estate Planning Important?
Many people think estate planning is only for the wealthy, but that couldn't be further from the truth. Everyone has assets, whether it’s a home, savings, or personal belongings. An effective estate plan helps you:
Avoiding Probate: Proper planning can help your heirs avoid the lengthy and costly probate process. On top of costing extra time and money, probate may not be as accurate to your wishes as a properly planned estate.
Minimizing Taxes: A well-structured estate plan can minimize estate taxes, therefore maximizing what your beneficiaries will receive.
Making Health Care Decisions: It’s imperative to designate someone you trust to make healthcare decisions for you if you become incapacitated and unable to speak for yourself. This is another measure for the security of your wishes and plans.
When Should I Start Estate Planning?
It’s never too early to start thinking about your estate plan. Major life events, such as marriage, the birth of a child, or a significant change in financial status, are ideal times to revisit your estate planning needs. At Lewis & Van Sickle, we take the time to listen to your unique situation, helping you make informed decisions that suit your needs.
What Documents Do I Need for an Estate Plan?
Your estate plan may include several important documents, such as:
Last Will and Testament: This outlines how your assets will be distributed upon your death, making sure your wishes are honored and minimizing potential disputes among heirs.
Revocable Living Trust: This allows you to transfer assets into a trust, which can be managed during your lifetime and distributed to your heirs afterward, offering flexibility in how and when your assets are shared.
Power of Attorney: This designates someone to make financial decisions on your behalf if you become unable to do so, providing peace of mind that your affairs will be handled by someone you trust.
Healthcare Proxy: This appoints someone to make medical decisions for you if you’re incapacitated, making sure that your healthcare preferences are respected even when you can't communicate them.
Advance Healthcare Directive: This specifies your wishes regarding medical treatment and end-of-life care, allowing your loved ones and healthcare providers to make informed decisions that align with your values.
How Do I Choose an Executor for My Will?
Choosing an executor is an important decision. This person will be responsible for carrying out your wishes, managing your estate, and handling any debts or taxes. When selecting an executor, consider the following:
Trustworthiness: It’s important to choose someone you can trust to follow your wishes, as they'll play a critical role in making sure your intentions are carried out faithfully.
Organizational Skills: The executor should be capable of managing paperwork and financial matters, as their ability to stay organized can significantly impact the efficiency of the estate settlement process.
Willingness: Always make sure the person you choose is willing to take on the responsibility of handling everything required, as this commitment is essential for traversing the challenges of estate administration.
We believe in taking the time to understand your family dynamics and relationships, helping you select the right executor for your unique situation.
What Happens If I Don’t Have an Estate Plan?
Without an estate plan, state laws dictate how your assets will be distributed, which may not align with your wishes. This could lead to complications, family disputes, and extended probate processes. It’s essential to take proactive steps to make sure your assets are distributed according to your wishes, avoiding unnecessary stress for your loved ones during a difficult time.
Can I Change My Estate Plan Once It’s Created?
Absolutely. Estate planning isn’t a one-time event. Life changes, such as marriage, divorce, or the birth of a child, may necessitate changes to your estate plan. Regular reviews and updates confirm that your estate plan remains aligned with your current wishes and circumstances. Our attorney emphasizes the importance of keeping open communication and being willing to adapt as life evolves.
How Much Does Estate Planning Cost?
The cost of estate planning can vary based on your specific needs and the intricacies of your estate. At Lewis & Van Sickle, we offer a range of options tailored to your circumstances. During your consultation, we’ll discuss your goals and provide a clear understanding of the associated costs. Our goal is to make sure you receive value for your investment in securing your family’s future.
What If I Have a Child With Special Needs?
If you have a child with special needs, it’s crucial to consider their long-term care in your estate planning. A special needs trust can provide for their financial needs without jeopardizing their eligibility for government assistance programs. Our attorney’s compassionate approach makes sure that your child is cared for in a way that aligns with your values and wishes.
How Do I Get Started With Estate Planning?
Getting started with estate planning is simple. Here are the steps you can take to get started today:
Assess Your Assets: Take inventory of your assets, including property, bank accounts, investments, and personal items.
Define Your Goals: Think about what you want to achieve with your estate plan. Consider who you want to benefit and how.
Consult an Attorney: Schedule a consultation with an experienced estate planning attorney who will take the time to listen to your needs and provide tailored options.
Review Regularly: Periodically review and update your estate plan to confirm it remains relevant and legally sound.
What Are the Common Misconceptions About Estate Planning?
Many misconceptions surround estate planning, which can lead to hesitation in getting started. For instance, some believe estate planning is only for the wealthy, while others think a simple will suffice for all situations. Additionally, some individuals may think that once they create a plan, they don’t need to think about it again. By addressing these misconceptions, we can clarify the importance of estate planning for everyone and the need for regular updates. If you have any concerns about the process, please reach out for more information from a professional attorney in your area.
Do You Need Estate Planning Services? Call Us
At Lewis & Van Sickle, LLC, we understand that estate planning is a deeply personal journey. Our attorney is committed to being a helpful guide throughout this process, providing options, and taking the time to listen to your concerns. Whether you’re starting from scratch or need to update an existing plan, we’re here to support you in building a brighter future for you and your family. We serve clients in Green Bay, Wisconsin as well as Oconto, Shawano, Kewaunee, and Sturgeon Bay. Contact us today to schedule your consultation and take the first step toward securing your legacy