Frequently Asked Questions — Estate Planning
Estate planning doesn’t have to be complicated. We’ve gathered answers to some of the most frequently asked questions to help guide you through the process.
What is estate planning?
Estate planning is the process of deciding how your assets will be managed and distributed after your death or if you become incapacitated. It includes documents like wills, trusts, powers of attorney, and advance medical directives.
Do I need an estate plan if I don’t have a lot of money?
Yes! Estate planning isn’t just for the wealthy. It ensures your wishes are followed, protects your loved ones from unnecessary stress, and allows you to name guardians for minor children and people to make decisions if you’re unable to.
What happens if I die without a will?
If you die without a will (called dying intestate), state law decides who gets your assets. This may not reflect your wishes and can create confusion and conflict for your loved ones.
What is probate?
Probate is the legal process of validating your will and distributing your assets. It can be time-consuming and public. Many people create trusts to avoid probate and keep matters private.
What’s the difference between a will and a trust?
A will is a legal document that takes effect after death and directs how your assets should be distributed. A trust is a legal arrangement where one person (the trustee) holds legal title to property for the benefit of another person (the beneficiary). Unlike wills, trusts can take effect during your lifetime and can avoid probate.
What if I already have a will? Do I need to update it?
Review your estate plan every 3-5 years and after significant life events such as:
- Marriage, divorce, or remarriage
- Birth or adoption of children or grandchildren
- Death of a named executor, guardian, or beneficiary
- Substantial changes in financial circumstances
- Moving to a different state
- Major tax law changes
I’m a single parent — who will take care of my children if something happens to me?
This is one of the most important decisions you can make. Your estate plan will include guardianship designations, ensuring that someone you trust will care for your children if you’re no longer able to.
What is a Power of Attorney and when do I need one?
A Power of Attorney (POA) is a legal document that designates a trusted individual to make decisions and take actions on your behalf. It is important to establish a POA while you are still legally competent and well before you may need it. This essential document allows your chosen “agent” to manage your affairs if you become unable to do so yourself due to illness, injury, or other forms of incapacity.
What is an Advance Directive?
An Advance Directive (also called a living will) specifies your wishes regarding medical treatments, particularly end-of-life care, if you’re unable to communicate. This document can address preferences about life support, pain management, organ donation, and other medical interventions.
What if I own a business?
We help business owners plan for succession, designate decision-makers, and ensure continuity in the event of incapacity or death. Planning ahead is especially important for women entrepreneurs.
Additional Resources to Guide You
Exploring The Risks: Online Estate Planning vs. Consulting An Attorney
Contact the Law Offices of Elsa W. Smith, LLC
Contact the Law Offices of Elsa W. Smith, LLC. We are committed to empowering women through estate planning.
