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Estate Planning: Knowing Your Priorities

Posted by Gregory Robinson | Jul 19, 2024 | 0 Comments

Why Estate Planning Matters

Thinking about the future and how our loved ones will fare after we pass away can be challenging. While it's natural to avoid these thoughts, proactively planning and prioritizing your goals can help create an estate plan that ensures your wishes are fulfilled. The first step is to consider your priorities, which will be unique to your circumstances, your loved ones' needs, and your desire to support your favorite charities.

Importance of Prioritizing in Estate Planning

Clarifying your priorities is crucial in the estate planning process. Working together with your advisors, we ensure you have enough assets at your death to carry out your wishes. This coordinated effort also prevents conflicts and significant issues.

Common Estate Planning Priorities

Consider the following priorities to see if they resonate with your goals:

  • Avoiding Probate: Probate can be expensive, time-consuming, and public. Many people prefer to avoid it, though some appreciate the oversight of a neutral third party.
  • Avoiding Conservatorship or Guardianship: If incapacitated, legally appoint someone to manage your finances and medical decisions to avoid court intervention.
  • Easing Post-Death Administration: Legally enforceable tools help loved ones follow your instructions and make the administration process smoother.
  • Providing for Loved Ones: Ensure your loved ones have what they need, especially if they require significant care.
  • Protecting Children's Inheritance: Structure inheritances to be distributed over time, at certain ages or life stages, or at the discretion of a trusted person.
  • Protecting Surviving Spouse's Inheritance: Consider how to protect your spouse's inheritance while balancing flexibility and control.
  • Disinheriting Family Members: If disinheriting a family member, be aware they may contest the will or trust.
  • Supporting Charities: Leave a lasting legacy by donating to charities, balancing this with the needs of your loved ones.
  • Reducing Estate Tax Liability: High-net-worth individuals should consider potential estate tax liabilities.
  • Reducing Trust Income Tax: Trust income is taxed at higher rates. Consider strategies to minimize this.
  • Avoiding Will or Trust Contests: Clear estate planning tools can help maintain family harmony and prevent disputes.

Preparing for Estate Planning

Follow these steps to ensure your wishes are reflected in your estate plan:

  1. Inventory Assets and Debts: Create a preliminary inventory to understand your financial situation, including life insurance benefits.
  2. List Priorities and Beneficiaries: Identify your priorities and the people or organizations you want to benefit.
  3. Rank Your Priorities: Prioritize your gifts to ensure essential wishes are met if funds are limited.
  4. Consult Advisors: Meet with your financial advisor, insurance agent, tax advisor, and estate planning attorney to create a comprehensive and enforceable plan.

Creating an estate plan is a significant gift to your loved ones. Schedule an appointment to learn how we can design a plan tailored to your unique needs.

About the Author

Gregory Robinson

Attorney Gregory Robinson is a native of Alabama. He earned his Juris Doctor (J.D.) degree from Mitchell Hamline School of Law and holds a Master of Business Administration (MBA) degree from Rice University. Prior to practicing law, he worked as a strategy consultant in the financial industry...

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