Why is Estate Planning Important for Everyone?
Author: Patty Gunthert
Often when we hear the term “Estate Planning”, we might be tempted to think it is for people with many assets of high net worth. However, having a solid Estate Plan prepared is not only something that can provide peace of mind, but it’s also a smart move for most everybody because it saves money and time. By thoughtfully organizing your affairs well in advance, you can protect your assets for yourself and your loved ones, avoiding the stress and expense of probate. As you read further, I am going to discuss the benefits of appropriate Estate Planning and how it helps to avoid the pitfalls of Probate.
What is Estate Planning?
Estate Planning is the process of arranging the management and distribution of your assets during your lifetime and after your death. It involves creating legal documents such as wills, trusts, property deeds, powers of attorney and healthcare directives. This planning allows you to ensure that your wishes are followed and minimizes disputes amongst your heirs or beneficiaries. It also allows you to make decisions regarding your future healthcare, in the event of incapacity, so that your wishes can be honored and respected at a time when you may no longer be able to communicate such desires. Last, when done correctly and customized to your particular situation, it can avoid probate.
What is Probate? Why Should Probate Be Avoided?
In Florida, when a person passes away with or without a will, a probate proceeding oftentimes must occur to legally transfer the decedent’s assets into the name of their intended beneficiaries and/or heirs.
You need Florida homestead protection that you control. At the time of an individual’s death, the assets pass from the person who owned such assets into “The Estate of …” (the deceased person’s name) – unless a Trust was appropriately set up in advance or otherwise structured Estate Plan.
Therefore, in order for those assets to now be transferred into either the named beneficiaries in the Will or the legal heirs - as determined by Florida statutes, a legal proceeding called Probate must occur, where the Court oversees the administration of and distribution of the deceased’s assets.
Please note, there are exceptions to this situation, but it is a specific set of circumstances where probate can be bypassed via an appropriate Estate Plan that has been set up in advance implementing specific Estate Planning tools.
This means a costly and lengthy legal matter is required to facilitate the transfer of assets, in which a Probate attorney must be hired to work with the loved ones of the decedent. Considering one’s frame of mind when we lose someone we are close to and/or related to, this can be an additional strain to endure on top of grieving. This is why having a good Estate Plan prepared in advance can be such a benefit to everyone.
Why do I need an attorney to prepare my Estate Plan?
So, you’ve made the right decision to get your Estate Planning done, but how should you proceed? Maybe you think this is merely a set of documents and you can DIY your way through it or use a legal document prep firm to create what you ask them to do. However, here are a few reasons why this can result in the very thing you wish to avoid – Probate – and an incomplete or incorrect Estate Plan for your specific set of circumstances.
1. DIY Will in Florida
Although personally a fan of DIY on basic household repairs or projects, I know when I’m in over my head and when to put down YouTube and call in a professional like Handy Andy. However, with Estate Planning, you may not even recognize that you are treading in unfamiliar territory and risk creating an Estate Plan that does more harm than good.
By the time your Estate Plan is implemented, you may be incapacitated or deceased – therefore in no condition to understand unanticipated consequences of your DIY plan.
The thing with legal projects, a non-attorney isn’t aware of what we don’t know, so significant items that must be considered when preparing a solid Estate Plan aren’t something a non-attorney would even know to consider.
An Estate Plan is a tool that is created with many goals in mind; one of those goals is to consider future events that might occur and create verbiage within the document to protect against adverse effects should certain events come to play.
2. Legal Document Preparation Firms
Unfortunately, these service providers are not licensed attorneys, nor do they have any ability to consult with you on the specifics of your situation.
They will simply create a cookie-cutter document that you request, with no regard to or responsibility to ensure that it is applicable to your situation.
In fact, their services come with exactly just such disclaimer, so you can be sure that you are taking a risk as to whether or not you’ve even chosen the appropriate documents for them to prepare.
These are situations that result in opening you up to requiring your loved ones to end up in a probate proceeding despite your best efforts to prepare in advance in an attempt to avoid probate.
Why Is It Important to Choose The Right Attorney?
Now that you know a little more about both Estate Planning and Probate, let’s discuss why it is vital to pick the right attorney to work with. Here are some points to consider when choosing which attorney regarding your Estate Planning needs:
Haste Makes Waste
Although it may be tempting to get your Estate Plan completed as quickly as possible, the reality is that a quality Estate Plan is a process.
Estate planning in Orlando, Florida is a joint project between you and the Central Florida Estate Planning Attorney.
Together you will craft your Estate Plan to your specific needs, and as such, this process requires gathering specific details, a consultation with the attorney to discuss various aspects of your life – including not only what assets you own, but who comprises your family, how many marriages may have occurred, what children and/or dependents do you have to consider and plan for.. and many, many other things to bear in mind.
Once a plan of action has been determined, the appropriate customized documents will be drafted & sent to you with explanation and review, so you have a chance to discuss changes. Next, the signing date is set up, where you sign your documents in the presence of 2 witnesses and a notary. From there, the documents are reviewed one final time to confirm all signatures are intact before the Folio of documents are returned for sake-keeping and a follow up discussion takes place to plan the funding of the trust – which officially places any assets you and the attorney determined should be in the trust, and the process by which this is to be accomplished.
1. Demeanor
Now that you know this isn’t simply a project to be completed in a day, it’s important to consider whether or not you felt the attorney addressed your issues adequately when consulting with you, and whether he/she was able to explain complex topics in an understandable manner; did you get a sense this is someone you are willing to work with?
2. Completion
Many Estate Planning firms tend to fall short when it comes to the successful completion of implementing the Estate Plan. They do 90% of the project, but allow the final 10% to fall through the cracks – yet it’s the most vital aspect. A Trust is only as good as it is funded, and therefore, it is important to work with a firm that is willing to go that extra mile to ensure your Estate Plan is worth more than just the paper it’s printed on.
3. Probate Attorneys make the best Estate Planning Attorneys
A huge benefit to hiring an experienced Probate Attorney to craft your Estate Plan is that they know firsthand what can go wrong – or was never addressed – in an Estate Plan that results in assets needing to be probated, and how to avoid it.
Our office handles probates in all 67 counties within Florida, and this has allowed us to gain valuable experience regarding how to prevent certain pitfalls of Estate Planning than can result in an estate being probated despite the best intentions.
One of the huge benefits of estate planning with a smaller law firm is that you receive much more individualized attention. When you engage us to prepare your family’s legacy, you are speaking directly to the attorney and legal assistant. You know how to reach us, without having to go through loops and loops of personnel. We are attentive and follow through on seeing to it that your Trust is not only created with your best interests in mind, but fully funded as intended so you can truly have peace of mind.
What if you find yourself facing Probate?
Despite efforts to educate people about the importance of Estate Planning, many people simply do not know enough about this process to make an informed decision.
This results is our loved ones making the best decision with the information they had at the time, which may result in not creating an Estate Plan that avoids probate.
If you find yourself in this situation, the first thing to do is find a Probate Attorney in Orlando. Our firm includes experienced probate attorneys from Florida that have been handling probate cases throughout Florida, in all 67 counties. This is important to know when considering a probate attorney because each and every county has different requirements and rules, in addition to many judges also having various procedures to follow, so it is important to select a probate attorney who understands what it takes to best handle the delicate matters of probate on behalf of their clients.
Patty Gunthert is a Legal Assistant at The Law Office of Phillip W. Gunthert,
An Estate Planning, Probate & Business Law Firm
Orlando, FL
866-894-4945
paralegal@gunthertlaw.com
