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What Type of Estate Plan Do I Need?
Estate planning can range from a straightforward will and powers of attorney to a more comprehensive plan involving trusts, probate-avoidance strategies, asset protection, or other specialized planning.
The right approach depends on more than the size of your estate. Your family circumstances, the property you own, how that property is titled, the people you want to protect, and what you want your plan to accomplish can all affect which planning strategies are appropriate.
You do not need to know whether you need a will, trust, beneficiary deed, SimplyPrepared, or another estate-planning strategy before contacting an attorney. A good estate-planning process starts with understanding your circumstances and goals, not necessarily by choosing a legal document.
What Determines the Right Type of Estate Plan?
The appropriate estate plan usually depends on several factors working together rather than any single issue.
Important considerations may include:
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whether you are married, single, widowed, or part of a blended family;
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whether you have minor children or beneficiaries who may need additional protection;
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the types of assets you own and how those assets are titled;
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whether avoiding probate is an important goal;
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whether you own real estate, a business, or property in more than one state;
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whether you have concerns about incapacity, long-term care, creditor exposure, or asset protection;
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whether your intended beneficiaries have special circumstances;
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and how much control you want over when and how property is distributed after your death.
Two people with estates of similar value may need very different plans because their families, assets, and objectives are different.
Some Estate Plans Are Straightforward. Others Are Not.
A straightforward estate plan may be appropriate when a person's wishes, family circumstances, and assets are relatively simple and there are no significant concerns requiring customized planning.
Other situations may call for a more comprehensive approach. For example, planning may become more involved when someone wants to avoid probate, protect assets for beneficiaries, plan around a blended family, provide for a beneficiary with special circumstances, address business ownership, or coordinate property that passes in different ways.
The important point is that complexity is not determined by the number of documents in the plan. A plan should be as simple as the circumstances allow, but comprehensive enough to address the issues that actually matter.
Common Estate-Planning Approaches
Although every plan should be tailored to the person creating it, many estate plans rely on a combination of a few common tools.
A will-based plan may be appropriate when a person wants to direct who receives property, nominate guardians for minor children, and name someone to handle the estate after death.
A trust-based plan may be appropriate when probate avoidance, privacy, continuity of management, or greater control over distributions is important.
Other plans may rely on beneficiary designations, beneficiary deeds, powers of attorney, health-care directives, or other planning tools to coordinate how property is managed during life and transferred at death.
The key is not to choose one of these tools in isolation. The plan should be designed so the documents, ownership arrangements, and beneficiary designations work together.
SimplyPrepared or Traditional Estate Planning?
Some people have straightforward planning needs that can be handled through a streamlined process. For qualifying clients, SimplyPrepared provides attorney-prepared wills and powers of attorney using a simplified process designed for uncomplicated situations.
Traditional estate planning is appropriate when a client needs more individualized advice or planning, including probate-avoidance strategies, trusts, asset-protection planning, long-term-care planning, business succession planning, or other customized solutions.
You do not need to decide which path is appropriate before contacting Fenton & Grimwood. If your circumstances are straightforward, we can identify that. If more comprehensive planning is warranted, we can explain why and recommend an appropriate approach.
You Do Not Need to Figure This Out Before Meeting With an Attorney
Many people delay estate planning because they are unsure whether they need a will, a trust, probate-avoidance planning, or something more specialized.
That is not something you need to determine on your own.
An estate-planning consultation should begin with your family, assets, concerns, and goals. From there, an attorney can identify the issues that matter, explain the available options, and recommend a level of planning that fits your circumstances.
The goal is not to make your estate plan more complicated than necessary. It is to make sure the plan actually addresses the problems you want to solve.
Not Sure What Type of Estate Plan You Need?
You do not need to choose the legal strategy before you meet with us. We can review your circumstances, explain the available options, and recommend an approach that fits your goals.