"I don't have an estate, why do I need an estate plan?" I cannot tell you how many times I have heard this question as an estate planning attorney. Most individuals, whether they know it or not, have an estate. For example, most clients own a home, vehicle and have at least one checking account. Just having these three things could cause a number of complications if organization and planning is not completed on the front end.
Consider an elderly client who is not married but has a number of children and grandchildren. The client owns a home in Georgia and a small farm in South Carolina. He also has three vehicles, some valuable farm equipment, a checking account and a CD. The client has not consulted an estate planning attorney and has no Will in place. When he passes away, probate will be required in his state of residence (Georgia). Additionally, an ancillary probate will be required in South Carolina where he owned the farm. Typically, the surviving family members will hire an attorney to handle the probate process, which requires court supervision. After all the paperwork has been filed, notice given to all heirs, title transferred and accounts closed, the estate will be closed. This process typically takes anywhere from 2 to 12 months, depending on the complexity of the estate, and the legal fees can add up quickly.
In many circumstances where two probates may be required, the client can avoid BOTH probates with a properly funded Living Trust. The Living Trust is a valuable planning tool that allows the client to retain total control and access to his property during life and transfers the assets to beneficiaries, outside of probate, at death.
The need for a Will can be emphasized by numerous examples. Consider that one of the client's children has special needs and is receiving government assistance. The receipt of a large inheritance can cause that child to lose those benefits, resulting in complications for that child and the loss of the client's assets that could have been preserved through a testamentary special needs trust. Consider a young client who has minor children. The Will can be used to designate a guardian in the event that she unexpectedly passes away.
These examples are just a small sample of the issues that an experienced estate planning attorney is trained to spot and plan for. If you haven't taken the time to consult an experienced estate planning attorney, there is no better time than now.
Areas of Practice: Estate Planning, Probate, Wills and Trusts, Medicaid Planning, VA Planning, Guardianship, Estate Tax, Collections
