Why is Estate Planning So Important?

It’s a common misconception that estate planning is only for the wealthy. Nothing could be further from the truth. Even if you have minimal assets and a modest income, an estate plan can protect your loved ones from potentially negative consequences upon your passing. In some cases, the consequences of poor (or non-existent) estate planning can be downright devastating, unnecessarily costing loved ones their valuable time and m

money.

Designating heirs for your assets, whether for a small savings account, a lake house and a stock portfolio, is key to seamless planning. Planning for your homestead property is the most important, and Vermont law affords mechanisms for exceptional planning to protect your family's interest in your homestead from probate and Medicaid's consideration for long term care. To not use what the law provides for your benefit, is a missed opportunity none of us can afford to miss. Without an estate plan in place, probate will be unavoidable and the court may determine who gets those assets, a costly process that can drag on for years.

Furthermore, while nobody wants to think of dying when they have minor children, it happens from time to time. If you have young kids, it’s important to prepare for the unthinkable. This ensures that they are raised and cared for as you wish. Without a named guardian, the courts may decide who raises your kids.

Estate planning has become even more important in recent years, as future earnings, investments, medical care, and inflation become increasingly difficult to predict. Consulting with an experienced estate planning attorney can help you determine your options, save money, plan for the inevitable, and preserve your assets for future generations.

How an Estate Planning Lawyer Can Help

Planning for your death might not be on your top 10 list of fun things to do, but having these plans in place can bring you immense peace of mind. A good estate planning lawyer can help you:

• Draft a will and appoint executors;
• Appoint guardians of minor children;
• Appoint trustees to handle bequests to minors until they reach adulthood;
• Create advance medical directives for financial and healthcare-related decisions, in the event you become incapacitated;
• Avoid federal inheritance taxes and allow more money to pass to your beneficiaries;
• Assemble a list of your assets, including real estate, bank accounts, life insurance, and investment accounts; and
• Avoid probate.

Meeting with an estate planning attorney can protect your assets,, your personal health and financial matters if you become incapacitated, your minor children, and your family from spiraling into a financial feud upon your passing.

What Not to Do

• Do not feel intimidated or overwhelmed by the process — you don’t need to assemble all required information before meeting with your attorney. Putting that kind of pressure on yourself will only delay the start. Your attorney will tell you what additional information you need.
• Do not expect to complete the process in only one meeting with your attorney. Effective estate planning takes time.
• Do not expect that your own research is equivalent to the advice and guidance an estate planning lawyer can provide. A good attorney will know Vermont’s constantly-evolving estate planning laws and adapt your planning documents to your goals.

The above benefits of creating an estate plan only begin to scratch the surface. You can also dispose of a business or business assets with an estate plan, leave a business to your partner, or direct that it be sold or liquidated with proceeds going to designated beneficiaries. In addition, you can create trusts to reduce income taxes, shelter assets from estate taxes, provide for loved ones with special needs, and reduce personal liability while still alive.

Contact Darby Kolter & Roberts, LLP Today

If you have estate planning questions, the skilled legal team at Darby Kolter & Roberts, LLP can help. We have been helping Vermonters preserve and protect their family's future for decades, and we can do the same for you. Contact us today for a confidential consultation about your estate planning goals and needs: 802-244-7352 or [email protected]