By Pennant Law
•
January 26, 2023
Death is an inseparable part of life, and the process of dying may be heartbreaking. Perhaps what can be more tragic is dying and leaving loved ones feuding over your legacy. Fortunately, you control many aspects of that process and how your legacy is passed on by creating an estate plan. The following few paragraphs will review the legal and practical steps you should take to plan for the final disposition of your life and legacy. Estate Planning: Inventory List As they say, “failing to plan is planning to fail,” and irrespective of the size of your estate, everyone needs to create an estate plan. The first step is to take an inventory of the property in your estate. Taking stock of your property will better help you to decide what estate plan fits your needs. You can do this by listing the personal belongings and real estate that you, your spouse, or your partner own. Property such as your clothing, car, collectibles, television, laptop, homes, jewelry, furnishings, bank accounts, digital assets (i.e., airline miles, cryptocurrencies and etc.), and investments. Lastly, list all of your creditors and debts. Identifying your assets and debts will give you an accurate picture of your estate and provide the foundation for choosing the best estate plan that fits your needs and achieve your objectives. Estate Planning: Wills and Trusts 101 After taking inventory of your property, the next step in creating an estate plan is choosing which estate plan option best carries out your dying wishes, safeguards your assets, and then distributes them according to your instructions. The three main options to distribute your property to its new owner through intestate (i.e., die without a will), testate (i.e., die with a will), or by a trust. The way your property gets distributed will depend on your wants. You want to avoid the courts probating and administration process. You want the distribution of your property to be private or public. You want your presumptive heirs to receive the property outright or periodically. You want to do nothing. If you desire to have privacy and more control and reduce tax liability, then creating a trust will benefit you more than creating a will. When it comes to estate administration/probate, as an estate planning and administration attorney, I’ve seen a lot of estate plans and estate documents over the years. Poor estate planning leads to loved ones being left out of an inheritance, family feuds, a lot of time spent at the courthouse, and high estate fees. Proper estate planning can mitigate all of your estate planning concerns, so choose wisely. Estate Planning: Advance Care Documents After choosing the estate plan option that best fits your needs, the next step is planning for illness, incapacitation, or old age. Statistically speaking, if you are under the age of sixty you are more likely to become disabled than you are to die. Understand that for any reason that you choose, as long as you are competent, the right to accept or refuse medical treatment is your own. However, seldomly do you consider who decides what should happen to you if you become incompetent or incapacitated and have not yet communicated your wishes. For that reason, every estate plan should include the following documents a health care power of attorney, durable power of attorney, and a living will. I like to call these your H.D.L. of estate planning, which is good to have because they help to protect you and your wishes when you are physically and mentally unable to do so. A healthcare power of attorney is a document that creates an agency relationship where you, the principal, choose an agent who can make healthcare decisions for you in the event that you become incapacitated or incompetent. A durable power of attorney is a document that creates an agency relationship where you, the principal, choose an agent who acts over your financial matters in the event that you become incapacitated or incompetent. Finally, a living will is a document that expresses your healthcare desires to a physician in the event that you are in a terminal condition and are unable to communicate them. You may recall the notable but tragic story of Jean-Pierre Adams, a soccer superstar who spent 39 years in a coma after a knee injury gone wrong. Or, the sad and publicized legal story of Terri Schiavo, who spent 15 years in a coma before having her feeding tube removed by a Florida Court at her husband’s request. As those cases have shown, these advance directives decisions are an essential part of your estate plan. How Can Pennant Law Offices Help You with Your Estate Plan? At Pennant Law Offices, we plan for your future by creating a customized estate plan that best meets your unique needs. We will advise you on the best way to pass on a legacy that you desire. We provide a hands-on approach to educating you about your estate plan and the responsibility and roles of the people you choose to carry out your estate plan desires. Contact your Charlotte Estate planning attorney Dwayne Pennant to develop your estate plan strategy. At Pennant Law Offices, PLLC, your rights and legacy are our passion.