Estate Planning Tools That Are Often Overlooked

 Posted on April 24, 2020 in Estate Planning

Only about four out of ten adults have any type of estate plan in place. Misunderstandings about the purpose of estate planning and fears about confronting one’s own mortality are two of the main reasons that people neglect this important responsibility. People also put off estate planning because they are overwhelmed and do not know where to begin.

If you are ready to get started on your estate plans, consult with an experienced estate planning lawyer. A lawyer will help you determine what types of estate planning tools will best accomplish your goals. He or she can also ensure that your estate plans do not contain mistakes that could invalidate the decisions you have made.

Planning for Future Disability or Incapacitation

Of the people who do create estate plans, many draft a will and little else. A will is a crucial estate planning tool that allows you to direct how your assets are passed down to heirs upon your death, but it is not the only estate planning tool worth utilizing. You must also consider what will happen if you become seriously ill or injured and are unable to speak for yourself. A medical power of attorney allows you to choose a representative to speak on your behalf about medical decisions if you are incapacitated and cannot express these medical wishes. A financial power of attorney allows you to appoint a representative to manage your finances if you cannot do so yourself. A living will allows you to choose in advance what types of end-of-life care you would and would not want if you could not express it. You can choose whether or not doctors should use mechanical ventilation, tube feeding, CPR, and other medical procedures to delay your death.

A Trust Offers Many Benefits that a Will Does Not

Many people have the misconception that a trust is only for the wealthy. In reality, anyone can benefit from creating a trust, even if their estate is modest. A trust is an agreement that allows a third party called a trustee to hold property on behalf of beneficiaries.

There are many different types of trusts that a person can use depending on their needs. Assets that transferred into trusts generally avoid probate, or the court process during which a will is authenticated. Probate is a matter of public record, so if you want information about your estate to remain private, a trust may be a better option than a will. Avoiding probate allows beneficiaries gain access to their inheritance must more quickly than if the trustor used a will. A well-structured trust can also protect your estate from creditors.

Contact a Lombard Estate Planning Lawyer

For more information about creating a will, trust, living will, power of attorney, or other estate planning documents, contact an experienced DuPage County estate planning attorney. Call 630-426-0196 today and schedule a confidential consultation at A. Traub & Associates to discuss your needs. We will work with you in finding the right tools for your situation.

Sources:

https://www.aarp.org/money/investing/info-2017/half-of-adults-do-not-have-wills.html

https://www.fidelity.com/life-events/estate-planning/trusts