Although no one wants to sit around the dinner table and talk about their inevitable death, everyone passes away at some point—there’s no stopping it. Since you don’t have a crystal ball to see into the future, making plans is something you should do right now. Keep reading to learn what estate planning entails and why you need to think about it today.
Estates Come in All Shapes and Sizes
“Estate planning isn’t for me. I’m not super-rich and famous.” That statement is something attorneys hear every day, and it couldn’t be further from the truth. There is a misconception that estates only include huge mansions, Lamborghinis, and private yachts. In reality, it covers anyone who has assets—any assets. These include homes (even mobile ones), retirement accounts, life insurance policies, investment accounts, bank accounts, and more. And no, you don’t need to be worth millions. Any asset with monetary value—no matter how small—counts.
Estate Planning in Simple Terms
Too many people don’t understand estate planning. Therefore, they don’t realize they need it until something happens. It’s easy to get lost in all the legal mumbo jumbo. Luckily, it’s a straightforward concept. Simply put, estate planning states what you want to happen to your assets after you pass.
The most basic and recognized type of estate planning is a will. It’s a legal directive that tells the probate judge how to divide your assets. A will names an executor, beneficiaries, and guardians for minors.
Incapacity documents are another type. They define what will happen if you can no longer care for yourself. Power of attorney and advanced healthcare directives are the most common. A kids’ protection plan is also critical for anyone with minor children. This directive names permanent, emergency, and successive guardians.
Additionally, it’s a good idea to consider long-term care planning if you end up in a nursing home. The right documents will designate parts of your estate to pay for care, which can run upwards of $10,000 a month.
Understand the Legal Process and Your Estate
When you pass away, Georgia law requires your estate goes through probate. What’s that? It’s a legal process that a family must file after a loved one dies. After filing, the court gathers a deceased person’s assets. They then pay any creditors from the estate and divide the remaining assets among the beneficiaries. There are a few ways to avoid probate, including:
- Having NO assets (highly unlikely)
- Being married and jointly owning everything
- Having a revocable living trust
- Through estate planning
Avoiding probate is a big deal, and the process is tedious. Small estates can expect probate to last about six months. However, if you are wealthy, it can drag on for years.
Personalized, Compassionate Estate Planning
Thinking about your mortality is never easy, but planning for the future is the best decision you can make for your family. Arch Legacy wants to guide you through the estate planning process. Our attorney will explain all your options in plain terms and answer any questions you may have. Whether you want a will, asset protection, or kids’ protection planning, we’ll help you make an informed choice.
What is estate planning? It’s something that applies to everyone. Contact Arch Legacy to begin the process today.
