Frequently Asked Questions
Do I need an attorney or can I do my estate plan on my own?
You only need to work with an attorney if you want to ensure you do not leave a mess for the people you love. These days, there are many DIY estate planning options, or even options in which you can work with a financial advisor or CPA on your estate planning. However, the risk of doing so is that your family could be left with a set of well-meaning, yet insufficient documents that fail in the event of your incapacity or death, leaving them in court or conflict, even if you thought you had a simple situation.
We share frequently about celebrities and people with extreme wealth who make the error of trying to go it alone or not using the right kind of professional, so if you thought you could do your own estate planning or work with a non-legal professional on a will or a trust, it’s certainly not your fault. But, now that you are here, let us save your family from the nightmare of what can happen when you don’t truly understand the consequences of working with the wrong kind of professional, or trying to go it alone.
If you truly cannot afford to work with an attorney - and you’ve engaged in a full cost-benefit analysis, like the kind we support you to conduct during our Life & Legacy Planning Session by considering your unique family dynamics and assets, and the right plan for you at your budget - we do have a training on the steps to DIY your estate plan, which we would be happy to send you upon request of our office.
How much will estate planning cost me?
How much does a “will” or “trust” cost is the question we get asked most often, and that makes sense – we know the topic of the price of a will or trust, or estate planning as a whole, is a critical part of your shopping around for an estate plan process. That’s exactly why we have designed our fees on a “flat-fee, no surprises basis”, and why our Life & Legacy Planning process is specifically designed to help you choose the right fee for you and the people you love based on your unique circumstances.
While we cannot quote fees online or over the phone because we need to understand the specifics of your unique situation, our unique estate planning process - Life & Legacy Planning (or estate planning for busy people) - is designed to guide you to choose your own fee, based on your family dynamics, your unique assets and your desires. Yes, you read that right, you’ll choose your own fee, so you know you’re paying exactly what’s right for you.
Having said that, you may want to read our report on the 5 Ways a $1500 or Less Estate Plan Could Fail Your Family.
What is a will?
Your Last Will is a legal document through which you indicate how you want assets owned in your name to be distributed, at the time of your death. This is also the document in which you name a legal representative - sometimes called a personal representative or executor - to carry out the distribution of your assets, distribute any assets owned in your name, at the time of your death. At the time of your death, your Last Will is filed with the probate court, to administer your estate. If you want to avoid the court process, you can use various methods to keep your loved ones out of court, which we will share with you in a Life & Legacy Planning® Session.
What is a trust?
A Trust is an agreement between a Grantor (the person who puts assets in the trust) and a Trustee (the person or entity that holds title to those assets) to hold assets for the benefit of a Beneficiary (the person who will receive the benefit of the assets while they are held in the trust). When using a Trust to hold title to assets, those assets will not be subject to a court process in the event of the incapacity or death of the Grantor. With a standard “Revocable Living Trust” or “Living Trust”, you would be the Grantor, the Trustee AND the Beneficiary of the Trust during your lifetime, and then upon your incapacity or death, a Successor Trustee can seamlessly step in, take over, and ensure the assets you’ve put in the Trust are distributed to your named Beneficiaries (or continue to be held in trust for their benefit).
Trusts can also be irrevocable, for asset protection purposes, for estate tax purposes, or for other purposes, which are beyond the scope of this discussion. If you are considering an irrevocable trust, there are tax and other considerations that you must take into account, ideally with the guidance of a trusted lawyer who can counsel you through all of the decisions.
Is estate planning only for the wealthy?
No, and it’s really the exact opposite because if you are not rich, the cost of failed or non-existent estate planning could be extremely costly for the people you love. As an adult, you have an estate. And, if you do not plan for your estate in the event of your incapacity or death, you’re leaving the people you love with a big job to handle, and they may not have the time, experience or money to do it. Failed estate planning is part of what causes families to lose wealth from one generation to the next, instead of grow their generational wealth. If you want to create generational wealth for your future generations, plan now.
What type of assets can be protected?
Only certain types of assets are appropriate for an asset protection trust. Once you identify what those are in your case, you can transfer those valuable assets into an asset protection trust to protect those assets from future and unknown creditors. This transfer will protect your assets while you are living and will also protect them from the IRS when you die.
This said, there are some disadvantages associated with transfers of valuable property into asset protection trusts, which include your likely or known exposure to creditors’ claims, your personal loss of control over how a particular asset is managed once transferred, and potential gift tax consequences that result from the transfer. What assets should be transferred into asset protection trusts depends on your specific situation, including your state of residence, the state where your business has been organized, where your physical office and registered agent are located, where your assets are located, and more.
Is my retirement plan protected from creditors?
If you have a retirement plan, federal law does not allow creditors to reach that asset. This applies to profit sharing, pensions, and 401(k) plans. However, both traditional and Roth IRAs may not be protected depending on the situation. We work closely with you so that you know the exact situation in your case and can make the right decisions from an asset protection planning perspective.
What if I move?
Your estate plan works no matter where in the U.S. you might physically be (such as on vacation) or might move to. This said, we always recommend finding your neighborhood Personal Family Lawyer® to review your out-of-state plan to help you ensure you make any necessary updates based on differences in state law.
A last will does what a Kids Protection Plan® does, right?
No, a Last Will is limited in how it can protect your children. First, a Last Will is effective only once you pass away and once the document is filed with and accepted by the probate court, but you may have a need long before the moment you pass away to have a guardian for your children. Second, appointing who would raise your children is one thing, while appointing short-term temporary guardians in case of a short-lived emergency is another thing. Your Kids Protection Plan® will leave no stone uncovered or contingency unplanned for. You name both short-term and long-term guardians and ensure that everyone you trust has exactly the information they need on-hand at any moment to care for your children.
