(12.23.2024) At a recent holiday event, I had the opportunity to connect with numerous potential clients and many others who expressed insightful and thought-provoking inquiries regarding elder care and estate planning," said professional fiduciary and certified elder law Attorney RJ Connelly III. "One question stood out among the rest, as many attendees posed it: “Is just having a will enough to protect me and my family?” This recurring concern highlights the importance of understanding the nuances of estate planning, so I felt it necessary to delve into this topic in a bit more detail."
"Having a will is foundational in safeguarding your assets and ensuring your wishes are honored after passing," continued Attorney Connelly. "However, it is essential to acknowledge that such measures may not protect you and your family completely. In this discussion, I will briefly discuss the various components of estate planning, including trusts, healthcare directives, and other critical documents. Together, these elements play a crucial role in offering peace of mind."
Just a Will?
The passing of an individual with only a will in place can lead to several significant consequences. First and foremost, the will must undergo a legal process known as probate, a court-supervised procedure designed to validate the will and ensure that the distribution of assets aligns with the deceased individual's wishes. This process can be time-consuming, potentially extending over several months or longer, depending on the estate's complexity. Furthermore, it is imperative to recognize that the will constitutes a public document, thus making it available for public examination.
In addition, should the deceased have any debts or obligations at their passing, they must be settled using the estate's assets before any distributions are made to beneficiaries. This requirement can result in delays for beneficiaries awaiting their inheritance, and in some instances, it may diminish the overall amount they are entitled to receive.
Moreover, a will, in isolation, may not encompass all of an individual’s assets comprehensively. Certain assets, such as those held in joint tenancy or life insurance policies with designated beneficiaries, may bypass the will's provisions and circumvent the probate process. This underscores the necessity for extensive planning; without such planning, some assets may not be distributed per the individual's intentions. Additionally, a will does not provide the requisite provisions for an individual’s care in the event of incapacity.
Lastly, while establishing a will allows for the designation of a guardian for minor children, it does not afford the same level of protection and management regarding the children’s inheritance as a trust would. Without a trust, beneficiaries may be compelled to wait until they reach the age of majority to inherit, potentially deviating from the testator's intended financial support.
Providing Protection
I strongly recommend that a will be a part of a comprehensive estate plan," stated Attorney Connelly. "This plan should encompass several critical elements to ensure your wishes are honored and your loved ones are adequately provided for following your passing. In addition to the will, the estate plan should include a durable power of attorney, which designates an individual to manage your financial affairs in the event of incapacitation. Furthermore, it should incorporate a healthcare proxy or living will delineating your medical preferences in critical situations."
Establishing trusts to manage your assets efficiently and provide for beneficiaries in designated ways is advisable. Additionally, it is prudent to regularly review and update your estate plan to reflect any significant life changes, including marriage, divorce, the birth of children, or alterations in financial status. Finally, ensure that your plan includes explicit instructions for distributing personal belongings and any digital assets you possess. This comprehensive approach will help minimize confusion and conflict among your heirs, securing your legacy.
A Final Note
"It is incredibly important to review one’s estate planning documents, whether comprehensive or limited to a will," stated Attorney Connelly. "Changing circumstances, particularly as children grow and establish their own families, necessitate this review. It is common to encounter individuals who created their estate plans or wills many years ago and have not taken the opportunity to reassess them since that time."
These documents may require revision under several circumstances, including but not limited to relocating to a different state, experiencing significant changes in financial circumstances such as retirement or receiving a substantial sum of money, adding a new dependent (such as another child or an aging parent for whom one provides care), modifying life insurance policies, or if heirs experience changes in marital status, have children, or pass away. Additionally, acquiring property in a different state, inheriting or purchasing property, experiencing a notable increase in property value, or changes in tax legislation may also necessitate a review of your estate plan or will.
Please note that the information provided in this blog is not intended to and should not be construed as legal, financial, or medical advice. The content, materials, and information presented in this blog are solely for general informational purposes and may not be the most up-to-date information available regarding legal, financial, or medical matters. This blog may also contain links to other third-party websites that are included for the convenience of the reader or user. Please note that Connelly Law Offices, Ltd. does not necessarily recommend or endorse the contents of such third-party sites. If you have any particular legal matters, financial concerns, or medical issues, we strongly advise you to consult your attorney, professional fiduciary advisor, or medical provider.
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