6 Things Your Estate Planning Attorney Should Help You With

Estate planning is a crucial part of getting older, and it’s never too early to start. Navigating this process without legal guidance can lead to unexpected challenges and costly mistakes. A top-rated lawyer in estate planning can keep you on track with your asset protection and help you avoid common pitfalls. Here are six things to have on your estate planning to-do list and how your lawyer can assist you.

1. Regularly update your estate plan.

Any change in your family’s makeup or status—birth, death, marriage, divorce—should trigger an update of your estate plan. Family changes might also mean moving from one city or state to another, a sizeable income adjustment, retirement, career transition, or significant life alteration. This revision process should be ongoing, and an attorney experienced in guardianship, Wills, and other estate planning issues will help you stay on top of it.

2. Delegate powers of attorney.

Your death is not the only contingency you should plan for. There is a greater chance of becoming injured and incapacitated, requiring a trusted person with power of attorney (POA) to make sound decisions on your behalf.

There are two POAs you need. One is the advance medical directive for your health, also known as a Healthcare POA. The other is the POA for your financial matters, referred to as a Durable POA. A local lawyer experienced with POA matters can guide you on choosing the individuals you can trust to act on your behalf while you’re still alive.

3. Direct retirement funds toward an appropriate Trust.

Consider designating a Trust as the beneficiary of your IRA or retirement plan. However, if you name the wrong type of Trust, you could incur unnecessary taxes. An attorney will likely tell you to pass your IRA and retirement savings on to a see-through Trust, and they can ensure you file the proper forms and take all the necessary legal steps.

4. You need to fund your living Trust.

A living or revocable Trust ensures your financial wishes are fulfilled if you become too incapacitated to communicate them. A living Trust also helps you avoid probate. However, it’s not enough to establish a living Trust. You must fund it and transfer the legal titles on your assets to someone you delegate. If you don’t complete all these steps, your estate could still go into probate. An estate lawyer can make sure you create a legally binding Trust that fulfills all the requirements.

5. Make sure your assets are in the correct names.

You might list some assets in your name and others jointly with your spouse. You may designate others still, such as adult children, to a Trust. You should review all your designations regularly, ensuring they make sense and reflect your wishes. Your attorney can discuss the factors to consider when identifying specific individuals in your estate plan.

6. Don’t bequeath an asset to someone already dead.

This happens more often than you think. Some life insurance policies or retirement accounts may be quite old and don’t reflect life changes. Some individuals open life insurance policies when young or unmarried, often naming parents or siblings as beneficiaries. When those young people get older, the named beneficiaries may have passed away, or a sibling relationship has gone sour.

Worse, a person might forget to name a spouse to the policy before passing away. If you are divorced or going through separation, check if your ex-spouse is still listed as a beneficiary. You may want to make changes, especially if you get remarried. A competent estate planning attorney can review your assets and ensure you do not make these mistakes.

Expert Guidance for a Secure Estate Plan

Unless you earned a law degree and have experience in taxation or estate law, taking all the necessary steps in estate planning can be challenging. Without proper legal guidance, you’re likely to make some costly mistakes. For estate planning assistance in Cincinnati, trust the legal professionals at Donnellon, Donnellon & Miller. They can recommend the tools to help you protect your assets and explore your options with you.