Starting the estate planning process can be daunting, especially if you are unsure of where to begin or who to involve. Developing an estate plan on your own may not be the right way to do it, as having an experienced lawyer by your side can make everything go a lot smoother. It’s important to understand exactly how the estate planning process works by recognizing seven key steps. A Missouri estate planning lawyer can help you work through all of these steps as needed.

What Exactly Is Estate Planning?

Simply put, estate planning is the comprehensive act of preparing for your family’s financial security after you pass away. An estate plan will outline your express wishes for the distribution of your assets, power of attorney, last will and testament, and any trusts you have established for certain beneficiaries. Your estate plan may even explain the arrangement for your funeral if you want to have that taken care of as early as you can.

You may want to consider changing your plan after a significant life event, such as a divorce, birth, death, or marriage. You don’t have to wait for a life change to do so, however. You can choose to update your estate plan whenever you feel it should be updated.

According to information recently collected by the U.S. Census Bureau, a family of four’s median household income in Missouri is almost $106,000. To many, that’s a significant yearly income that likely warrants an estate plan and power of attorney to manage your assets when that day comes. You may be having trouble discussing your mortality with your family. A local grief support group like GriefShare may be able to help your family prepare for it.

The Seven Steps of Estate Planning

Depending on the way you choose to move forward with your estate plan, there may be many significant steps you have to take along the way. Developing a detailed estate plan may not be easy. If you choose to do it yourself without a lawyer, it can seem overwhelming. Here are seven distinct steps in the estate planning process you may not want to miss:

  • Define your goals: You can’t move forward with an estate plan unless you have clearly defined goals that explain what you want from your plan. No two plans are the same. Every individual’s needs are different.
  • Draft a will: A last will and testament is a vital part of an effective estate plan. If you haven’t notarized a will yet, you should do so immediately. A will lists exactly who will benefit from your estate and what they will receive from your assets. Make sure your most recent will reflects your current wishes. As your wishes change, you will need to update your will accordingly.
  • Develop a trust: Trusts can be important tools you use to protect your assets while avoiding certain estate taxes. If your assets are in a trust, it can allow more control for the designated beneficiary when the time comes to collect. A good lawyer can help you establish a solid trust.
  • Choosing beneficiaries: Choosing who among your family and friends deserves to benefit from your estate can be easier said than done. You have to consider the needs of your loved ones, as well as personal traits like loyalty. Make sure you are very clear in your plan when you name your beneficiaries.
  • Power of attorney: Be sure to designate someone you trust implicitly to have power of attorney over your medical needs and/or finances. If something were to incapacitate you, it is vital that someone you trust can act in your stead.
  • Estate taxes: Be sure to make a plan to handle estate taxes as they arise. You don’t want your family to have to worry about them. Estate taxes can be a considerable burden on your family if your estate is large enough.
  • Review your plan: You should always look at your estate plan to ensure the details reflect your current wishes. Estate planning is a process that never truly ends.

FAQs

Q: What Are the Elements of a Sound Estate Plan?

A: The elements of a sound estate plan can change depending on who is developing it and what the principal wants to include. Generally, the elements of an estate plan include a last will and testament, a trust, an appointee for power of attorney, a list of designated beneficiaries, and possibly funeral arrangements. If you are unsure of what to include in your estate plan, you should consult with your lawyer.

Q: What Is the Most Difficult Step in the Process?

A: There is no telling what the most difficult step may be in the estate planning process. Everyone’s situation is different when it comes to putting together an estate plan. What may be difficult for one person may be quite simple for another. For a lot of people, the most difficult part of the entire process may be telling their families. A lot of older people don’t want to talk about their death with their loved ones, which is understandable.

Q: What Is the Most Important Step in the Process?

A: Every step of the estate planning process is important if you want your wishes to be accurately reflected when the time comes. Overall, the most important step may be finalizing the will. The will is the piece of the plan most often contested by the beneficiaries, especially if your estate is vast. If there is no will, your estate may be subject to Missouri’s intestate succession laws, and the court’s decision for your assets may not reflect your own.

Q: Should I Hire an Estate Planning Lawyer?

A: Yes, you should seriously consider hiring an estate planning lawyer to help you through this process. Estate planning is made up of many important moving parts. You may not know what to do for all of them, but an estate planning lawyer does. Having them by your side throughout this process can only help you. They can guide you through every step, make sure you don’t make any mistakes, and ensure everything is properly notarized.

Contact Us Today

An estate planning lawyer at Stange Law Firm can help you do what you need to do. Contact us to speak to someone about your case.