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With 2022 in the rear-view mirror, it’s time to celebrate all things new. A new year, a new you, and a new estate plan. Houston estate planning lawyer Kimberly Hegwood with Your Legacy Legal Care
“People are already making resolutions, setting goals, and aiming to be productive,” Hegwood said. “It is a natural time to think about the future and put an estate planning strategy into action.”
Only 46% of adults in the United States have a last will and testament in place—the easiest and most affordable estate planning document to secure. That means over half of Americans don’t have the most basic strategy in place to plan for the future and risk the possibility of some costly headaches for their loved ones.
The Risks of Not Having an Estate Plan
When someone passes away without an estate plan in place, most of the time, their estate will go through a court-supervised process called “probate.”
“It’s time-consuming, it’s public, and it can get pricey,” Hegwood warns about probate court. “You don’t want the court deciding how your assets are distributed to your heirs. You want to decide that yourself.”
Many estate planning strategies include asset protection measures that will shield your wealth from not only the probate process but also from creditors and estate taxes. Hegwood warns that without those measures in place, the court will handle asset distribution, leaving less remaining for your loved ones.
In some of the most complex estate matters, if there’s not even a will for the estate, there may be family disputes about what should happen to the assets.
5 Most Important Estate Planning Documents
While every estate plan is different, there are a handful of legal documents that offer the most protection for you and for your estate.
These five documents ensure that your wealth is protected for the future and that your wishes are known and honored when you are unable to express them yourself.
- Will — A legal document that outlines your wishes for which beneficiaries receive which assets and who will care for minor children.
- Living Trust — An arrangement that grants a third party the ability to hold assets for your beneficiaries’ benefit.
- Statutory Durable Power of Attorney — The designation of a trusted individual to make financial decisions on your behalf, should you be unable to do so.
- Medical Power of Attorney — Designates someone you trust to make medical decisions based on the terms you have outlined.
- Advance Healthcare Directive — A legal document that outlines your end-of-life wishes for medical care and decision-making regarding your health.
“No one knows what the future could hold,” Hegwood said. “A strategic estate plan offers some financial assurance for your loved ones and some peace of mind for you.”
About Your Legacy Legal Care
At Your Legacy Legal Care
About Your Legacy Legal Care
Your Legacy Legal Care
