What do you want out of an estate plan? An estate planning attorney can guide you through the estate planning process and make sure you’re not forgetting anything, but it still pays to be prepared. To help things go smoothly, you can identify your estate planning priorities.
There’s More to Estate Planning Than You May Realize
When many people think of estate planning, they think of wealthy families passing down mansions and millions of dollars. The misconception is understandable. After all, disputes over multimillion-dollar estates often make headlines. However, there’s a lot more to estate planning – and that’s why estate planning is important to every adult.
The following list covers common estate planning goals.
Distribution of Assets
Although the distribution of assets isn’t the only purpose of estate planning, it is important. Even if you’re not wealthy, you are likely to have savings, real estate, family heirlooms and other items of financial or sentimental value that you want to pass on to your loved ones. Estate planning tools, including wills and trusts, allow you to control what happens to your property.
Providing for Minor Children
For parents of young children, this is often the most important aspect of estate planning. You can name a guardian in your will. You can also secure life insurance and set up trusts to make sure your children will be provided for financially.
Caring for a Dependent Adult
If you have a sibling, spouse, parent, adult child or other adult who depends on you for care, you can use estate planning to ensure that their needs will still be met if anything happens to you. As with minor children, you can nominate a guardian in your will and set up life insurance and a trust to provide for them.
Making Plans for a Pet
When a pet owner passes away, the pet may be sent to a shelter if no one in the family steps up to provide care. Many pet owners would not want to see this happen. You can use estate planning to take care of your pets, for example, by nominating a caretaker and setting up a trust or by participating in a program like the Oregon Humane Society’s Friends Forever program.
Minimizing Tax Burdens
Large estates may be subject to so-called death taxes, which can include the federal estate tax as well as state-level estate and inheritances taxes. The Oregon estate tax has a particularly low threshold, kicking in at just $1 million. When you include real estate, it’s very easy for estates to meet this threshold, even if you don’t consider yourself wealthy. If your estate could be subject to taxes, you might want to consider estate planning strategies that can minimize the tax burden so your heirs receive more.
Safeguarding Assets
Depending on your family dynamics, distributing your assets may not be as simple as divvying everything up in a will. For example, you may have an adult child who struggles with addiction and would likely squander any inheritance on drugs, or you may have children who, while technically legally adults, are still young and financially irresponsible. You may also be worried that your spouse will remarry, and you want to ensure your assets stay with your children rather than going to any future children from another relationship. Delicate situations like this can be handled with strong estate planning strategies designed to protect your assets and the people you want to inherit them.
Managing Digital Assets
From social media accounts to cryptocurrency, digital assets have become an increasingly important part of our lives, and that makes them important in estate planning. When digital assets are overlooked, heirs may struggle to gain access to digital assets, but proactive planning can help you avoid problems.
Giving to Charity
If you have a charity that’s dear to your heart, you can make it part of your estate planning. There are several different tactics you can utilize to incorporate charitable giving into your estate plan, including wills, trusts and life insurance.
Incapacity Planning
Have you ever thought about what would happen if you fell into a coma or were otherwise unable to make medical decisions for yourself? Incapacity planning is a critical part of estate planning. By creating an advance directive and naming a healthcare proxy, you can ensure that your care follows your wishes.
Leaving a Legacy
Estate planning is often about leaving a legacy. It’s the final way you can make an impact on the world and provide for your loved ones. Through estate planning strategies like trusts and life insurance, you can decide what type of legacy you’ll leave behind.
There’s a lot to consider when creating an estate plan, but don’t worry – an estate planning attorney can help you tackle your estate planning priorities. Are you ready to tackle your estate plan? Contact Skinner Law.