An Ounce of Estate Planning Prevention is Worth Way More Than a Pound of Cure

February 24, 2012

Few people want to consider their own mortality, so it can be difficult for some to ponder the issue of estate planning. Even so, everyone -- from the very rich to those with much more modest asset holdings -- will benefit from a comprehensive estate plan that dictates how and where their property should go after they are gone. It is never too early or too late to get started on an estate plan, but an ounce of estate planning prevention is worth way more than a pound of cure. Taking steps now by drafting a will, trust, living will or health care directive can keep your loved ones from having to make difficult decisions in the future.

Why Now?

Why not? Many people think that they can just put off estate planning "until tomorrow." Unfortunately, sometimes "tomorrow" never comes -- life is too uncertain to not be protected by a comprehensive estate plan. Television and print news are full of tragic stories of sudden deaths in car wrecks, homicides, house fires and other accidents, so it is much better to not gamble against fate and take steps to protect your assets today. Depending on the size and complexity of your estate, there are a variety of different estate planning tools that may be right for you.

Wills

Wills are probably the most commonly used estate planning tool (even though a living trust will likely be the cheapest estate planning method long-term), and they can usually fit the needs of your average person. Wills are great for devising how particular assets are to be distributed (if, for example, you really want your great-grandmother's china to be passed to your daughter, or you want Uncle Joe's prized Mustang to go to your son) as well as passing large chunks of estate property. Properly drafted wills can possibly -- depending on the state in which you and your heirs live -- avoid the probate process and ensure a speedier distribution of your assets than some other estate planning methods.

Probate is still a necessity in Arizona, but a will can name a guardian for your minor children as well as name an executor of the estate. A properly drafted will can remove the costs associated with the bond premium and can also reduce the expenses of estate administration.

Trusts

Trusts are particularly helpful in states like Arizona where probate court is a necessary step in the estate administration process. A trust can bequeath title to particular high-value assets (like real property or funds) and bypass the need for those assets to go through probate. Trusts can also be helpful to the property owner while he or she is still alive, though. Trusts can be set up in such a way as to protect a person's assets in the event of illness, injury or other incapacitation, thus preventing those assets from being misused or disposed of in a manner the owner would not have wanted.

Other Estate Planning Tools

Other preventative estate planning tools can be used to protect both the person -- like a living will or power of attorney -- and their property -- like a living trust. Much more information about what types of tools will best meet your unique needs can be gleaned by visiting an experienced estate planning attorney in your area.

Article provided by Platt & Westby, P.C.
Visit us at www.plattwestby.com