What is an Estate Planning Lawyer and Why Do I Need One?
We have all seen the advertisements on television - $150 for a Will or, even better, a Trust. I cringe every time I see one of those commercials or a website promoting a ‘cheap’ estate plan. Engaging the services of a lawyer to prepare your estate plan is a wise investment, but first, what is an estate planning lawyer?
There are lawyers, and then there are estate planning lawyers. You will find many law firms that offer estate planning services along with a multitude of other services. These are called ‘general’ firms, and while they may have many talented attorneys, estate planning is a complex and ever-evolving practice area.
An estate planning lawyer, on the other hand, is someone who specializes in this subject and stays up-to-date on changes in the law, knowing how those changes will affect their clients. Estate planning lawyers prepare numerous important documents, including Wills, Trusts, Powers of Attorney related to healthcare and financial matters, Advance Medical Directives, and deeds. They know how to prepare these documents in a manner that provides the greatest protection to their clients.
For most of us, we spend the majority of our lives working hard to acquire and protect our assets. If you own anything, you have an estate. This includes real estate, bank accounts, retirement accounts, stocks, bonds, other investments, life insurance, personal property (e.g., jewelry, cars, artwork, clothing, household furnishings), and even pets. If you value anything you own, it is crucial to properly document how you want those assets distributed at your death.
A properly drafted Will or Trust will also protect your assets from the creditors of your beneficiaries or, in some cases, from the beneficiaries themselves. Younger beneficiaries or beneficiaries with mental or physical impairments oftentimes should not have an inheritance distributed to them outright. An estate planning lawyer will advise you about the best way to protect all of your assets, depending on your individual and familial circumstances. For example, you can hold assets in a trust for the benefit of a younger beneficiary. The funds can still be used for the beneficiary’s health, education, and general maintenance, but they are not available for the beneficiary to purchase a fancy red sports car.
It is a common misconception that, at your death, if you had a Last Will and Testament, then that Will has to be recorded at the courthouse. Once recorded, a Will becomes public record, meaning anyone can view its contents. Wills only need to be recorded, however, if there is a need for probate. Probate is the court-monitored administration of an estate. Probate is triggered if, at your death, an asset is left in your individual name with no beneficiary.
Estate planning attorneys know how to keep your estate out of probate so that the administration of your estate can be done privately – outside of the court process. If you have ever been named Executor of a Will and had to endure the probate process, then you also most likely understand why there is a great desire to avoid it.
Depending on the value of your estate, there may be tax implications at your death. The tax laws change frequently, and no one can predict the laws in effect at the time of your death. A good estate planning attorney will draft your documents to ensure your estate is afforded the greatest possible protection from any potential tax consequences at your death.
So, why do you need an estate planning lawyer? The answer is simple: protection.
Do not fall for the ‘cheap’ online Will or Trust. There is no one-size-fits-all estate plan, and when something sounds too good to be true, it almost certainly is. Invest in an estate planning attorney to protect your hard-earned assets and make sure those assets pass easily at your death. Your beneficiaries will thank you.