Estate Planning

What is Estate Planning?

Estate planning is the process of arranging and preparing for the management and distribution of your assets and personal wishes both during your lifetime and after your passing. It ensures that your loved ones are cared for, your healthcare and financial decisions are respected, and your legacy is protected.

A well-designed estate plan can help you avoid unnecessary legal costs and delays, reduce taxes, and provide clarity and peace of mind for you and your family.

Core Documents in an Estate Plan
A comprehensive estate plan often includes several key legal documents:

Last Will & Testament: Directs how your assets should be distributed and names guardians for minor children.
Revocable Living Trust: Helps manage and distribute assets smoothly, often avoiding probate.
Financial Power of Attorney (POA): Appoints someone to handle your financial affairs if you are unable to do so.
Healthcare Power of Attorney (POA): Designates someone to make medical decisions on your behalf if you cannot.
Living Will / Advance Directive: Provides instructions for your medical care and end-of-life decisions.

Why Estate Planning is Important
Without a proper estate plan, your assets and personal decisions may be left in the hands of the courts, which can lead to unnecessary stress, expense, and conflict for your loved ones. Having a plan in place gives you control, protects your family, and ensures your wishes are carried out exactly as you intend.

Who Should Have an Estate Plan?
Estate planning is not just for the wealthy or elderly. Everyone should have an estate plan, especially if you:

Have children or other dependents.
Own a home or significant assets.
Want to make your healthcare wishes clear.
Desire to minimize family conflict and legal complications.
Want to ensure a trusted person manages your finances or healthcare decisions if you are unable to.

Creating an estate plan is one of the most meaningful steps you can take to protect your loved ones and your legacy.

We're Here to Help!
If you're ready to create or update your estate plan, contact our office today. We can guide you through the process and develop customized documents to protect your family, your finances, and your future. Reach out to us by scheduling an In-Person Meeting, a Video Meeting, or a scheduled Phone Call, and let us help you take this important step in planning for peace of mind.

Now... If you wonder, "Do I need an Estate Plan?", find your situation below:
To help you understand what estate planning means to you, the following sections address some estate planning needs that are common among some very broad groups of individuals. Think of these suggestions as simply a point in the right direction, and then seek professional advice to implement the right plan for you.

Over 18
Since incapacity can strike anyone at anytime, all adults over 18 should consider having:

A durable power of attorney: This document lets you name someone to manage your property for you in case you become incapacitated and cannot do so.
An advance medical directive: The three main types of advance medical directives are (1) a living will, (2) a durable power of attorney for health care (also known as a health-care proxy), and (3) a Do Not Resuscitate order. Be aware that not all states allow each kind of medical directive, so make sure you execute one that will be effective for you.

Young & Single
If you're young and single, you may not need much estate planning. But if you have some material possessions, you should at least write a will. If you don't, the wealth you leave behind if you die will likely go to your parents, and that might not be what you would want. A will lets you leave your possessions to anyone you choose (e.g., your significant other, siblings, other relatives, or favorite charity).

Unmarried Couples
You've committed to a life partner but aren't legally married. For you, a will is essential if you want your property to pass to your partner at your death. Without a will, state law directs that only your closest relatives will inherit your property, and your partner may get nothing. If you share certain property, such as a house or car, you might consider owning the property as joint tenants with rights of survivorship. That way, when one of you dies, the jointly held property will pass to the surviving partner automatically.

Married Couples
For many years, married couples had to do careful estate planning, such as the creation of a credit shelter trust, in order to take advantage of their combined federal estate tax exclusions. A new law passed in 2010 allows the executor of a deceased spouse's estate to transfer any unused estate tax exclusion amount to the surviving spouse without such planning. This provision is effective for estates of decedents dying in 2011 and later years.

You may be inclined to rely on these portability rules for estate tax avoidance, using outright bequests to your spouse instead of traditional trust planning. However, portability should not be relied upon solely for utilization of the first to die's estate tax exemption, and a credit shelter trust created at the first spouse's death may still be advantageous for several reasons:

Portability may be lost if the surviving spouse remarries and is later widowed again
The trust can protect any appreciation of assets from estate tax at the second spouse's death
The trust can provide protection of assets from the reach of the surviving spouse's creditors
Portability does not apply to the generation-skipping transfer (GST) tax, so the trust may be needed to fully leverage the GST exemptions of both spouses
Married couples where one spouse is not a U.S. citizen have special planning concerns. The marital deduction is not allowed if the recipient spouse is a non-citizen spouse, but a $190,000 in 2025 annual exclusion is allowed. If certain requirements are met, however, a transfer to a qualified domestic trust (QDOT) will qualify for the marital deduction.

Married with Children
If you're married and have children, you and your spouse should each have your own will. For you, wills are vital because you can name a guardian for your minor children in case both of you die simultaneously. If you fail to name a guardian in your will, a court may appoint someone you might not have chosen. Furthermore, without a will, some states dictate that at your death some of your property goes to your children and not to your spouse. If minor children inherit directly, the surviving parent will need court permission to manage the money for them. You may also want to consult an attorney about establishing a trust to manage your children's assets.

You may also need life insurance. Your surviving spouse may not be able to support the family on his or her own and may need to replace your earnings to maintain the family.

Comfortable and Looking forward to Retirement
You've accumulated some wealth and you're thinking about retirement. Here's where estate planning overlaps with retirement planning. It's just as important to plan to care for yourself during your retirement as it is to plan to provide for your beneficiaries after your death. You should keep in mind that even though Social Security may be around when you retire, those benefits alone may not provide enough income for your retirement years. Consider saving some of your accumulated wealth using other retirement and deferred vehicles, such as an individual retirement account (IRA).

Wealthy and worried
Depending on the size of your estate, you may need to be concerned about estate taxes.

Estates of $13,990,000 in 2025, are effectively exempt from the federal gift and estate tax. Estates over that amount may be subject to the tax at a top rate of 40 percent.

Similarly, there is another tax, called the generation-skipping transfer (GST) tax, that is imposed on transfers of wealth that are made to grandchildren (and lower generations). The GST tax exemption is $13,990,000 in 2025, and the GST tax rate is 40 percent.

Whether your estate will be subject to state death taxes depends on the size of your estate and the tax laws in effect in the state in which you are domiciled.

Elderly or ill
If you're elderly or ill, you'll want to write a will or update your existing one, consider a revocable living trust, and make sure you have a durable power of attorney and a health-care directive. Talk with your family about your wishes, and make sure they have copies of your important papers or know where to locate them.

Set Up An Appointment
Contact our office and set up an appointment so we can discuss your situation and see if developing an Estate Plan is right for you and your family. We can address any needs and answer any questions you may have.