Estates Overview

WILL BASED PLAN:

At a minimum, everyone over the age of 18 should have a will-based plan. The will-based plan is ideal for someone looking to get the minimum documents in place to ensure that they have chosen the person that will manage their affairs and who should receive their assets upon their death.  Our will based plans will also include the necessary documentation to address incapacity.

This type of plan is most appropriate for individuals or couples who have minimal assets, do not own real estate, and have no minor children. If you have minor children, substantial assets or your own real estate, this type of plan may be insufficient to accomplish your goals and a “Trust-Based” Plan will likely be recommended.  Regardless of the plan you choose, any plan of yours is better than no plan at all

Benefits of a Will-Based Plan

1. You select the personal representative/executor of your estate (the person that will manage your affairs after your death)
2. You designate a guardian for your minor children and/or dependents
3. You designate the beneficiaries that you want to receive your assets
4. You appoint the person that you would want to make health care decisions on your behalf if you are incapacitated
5. You appoint the person that you would want to act on your behalf for financial matters if you are incapacitated
6. You indicate the type of treatment that you would want regarding life support and your desires regarding organ donation

Limitations of a Will-Based Plan

1. A will-based plan will require that your family go to court and handle your estate through the probate process. The probate process is a long process (oftentimes 12-18 months), it’s expensive, and it’s an entirely public process. If you would prefer that your family avoid having to go through Probate, a trust-based plan will be recommended.
2. Though a will-based plan allows you to designate your beneficiaries, a will-based plan will not provide you with the flexibility to manage how your beneficiaries will receive your assets. For example, if you have minor children, would you want them to receive outright distributions of their full inheritance at the age of 18? A will does not allow for the flexibility to manage how your beneficiaries will receive their assets. Perhaps you would prefer to limit how their inheritance is used, such as for education, or structure a plan for them that involves distributions at certain ages or upon certain milestones, such as graduating from college or starting a business.
3. A will-based plan does not allow for creditor protection, if there is any concern that the inheritance that your beneficiaries would receive might be taken away by the creditors of your beneficiaries, a trust-based plan will be more appropriate to safeguard those assets - there is no creditor protection for assets received in a will-based plan.

TRUST BASED PLAN:

A “Trust-Based” Plan is the most efficient plan for anyone with minor children, anyone who owns real estate, or anyone that owns their own business.  The trust-based plan accomplishes the same goals as the “Will-Based” plan, by allowing you to choose the person that will manage your affairs and indicate who should receive your assets, but it has the added benefit of ensuring privacy throughout your incapacity and death, avoiding Probate (a lengthy, public, and costly court process), and allowing flexibility with asset management for minor children, elderly parents, and pets.

Benefits of a Trust-Based Plan

1. You select the  person who will manage your affairs after your death (trustee & executor/personal representative)
2. You designate a guardian for your minor children and/or dependents
3. You designate the beneficiaries that you want to receive your assets
4. You appoint the person that you would want to make health care decisions on your behalf if you are incapacitated
5. You appoint the person that you would want to act on your behalf for financial matters if you are incapacitated
6. You indicate the type of treatment that you would want regarding life support and your desires regarding organ donation

Additional advantages of Trust-Based Plan Over a Will-Based Plan

1. Avoids Probate, a lengthy court process (this can take 12-18 months, during which time, assets are frozen)
2. Elimination of the significant costs and fees associated with the Probate process. These fees are set by law and are based on the gross estate that you leave behind. (Note: the attorney may be able to petition the court and receive an even higher fee.)
3. Ensures private handling of your estate (as opposed to a public court process). If you would prefer that your financial matters be kept private, a trust-based plan can accomplish that.
4. Allows for increased flexibility in managing assets (particularly useful if the beneficiaries are young or are not experienced with handling money), reducing the likelihood that the wealth will be squandered or used imprudently. For example, if you have minor children, would you want them to receive outright distributions of their full inheritance at the age of 18? You may prefer to limit how their inheritance is used, such as for education, or structure a plan for them that involves distributions at certain ages (such as 25, 30, and 35 years old), or upon certain milestones, such as graduating from college or starting a business.
5. A trust-based plan allows for creditor protection. If there is any concern around the inheritance that your beneficiaries are to receive being taken away by their creditors, a trust-based plan will be more appropriate to safeguard those assets. A trust can be designed so that judgment creditors of your beneficiaries cannot access the funds in the trust.
6. Trusts can be used to minimize taxes and preserve family wealth.

INSURANCE PLANNING

 You have insurance because you love your family, your partners, your clients, and you love you. You need the right amount of life insurance to care for your family and loved ones should something happen to you.  You need personal lines of insurance to care for your home, your vehicles and your income.  If you are a business owner, you may consider general business insurance, professional liability insurance, special events insurance and more. The key is to make sure that you have just the right amount of insurance to ensure that you will meet YOUR OBJECTIVES.