In this article:

Planning for the future can be daunting, especially when planning for your loved ones after you are gone. There is so much to consider that it can seem overwhelming, difficult to navigate, and tough to begin. What do you need and how do you know where to start?

October 21st – 27th is National Estate Planning Awareness Week, and to celebrate, we asked our trust & estate attorneys five of the most frequently asked estate planning questions.

Estate planning is planning for how a person's assets will be distributed after death, and who will be in charge of a person's finances and health care upon a person's incapacity or infirmity. Estate planning minimizes tax and legal complications, while ensuring that beneficiaries are taken care of. An estate plan can include a will, beneficiary designations for non-probate assets, one or more trusts, a power of attorney, health care proxy, living will, and more.

Will: a legal document dictating instructions on the distribution of property at death, who will be in charge of such distribution, and the appointment of guardians for the management of assets and custody of children under 18 years of age. To be effective, a will must be filed with – and the will's executor appointed by – a Surrogate judge in the county in which the person dies. This is commonly referred to as “probate”.

Trust: a legal document that grants rights in property – either real, personal or both – that is held in a by one party for the benefit of another. A trust requires a trustee (the person holding title to the property), trust property, and one or more beneficiaries (the persons) receiving the benefits of the trust).  A trust can be revocable, for the lifetime management of assets and the avoidance of probate, or it can be irrevocable, to limit estate taxes, protect assets from creditors, and in some instances, protect assets when a person applies for Medicaid. We recommend speaking to an trusts and estates attorney to effectively determine which kind of trust would be right for you.

Estate: An “estate” encompasses all of a person's assets and liabilities. The value of an estate is the total value of a person's assets minus liabilities (debts).

Like most legal documents, you have legal capacity to make a will once you have reached age 18. However, it is exceptionally important to have a will when you have children, acquire assets (like buy a house), or get married. This is to protect you and your loved ones in case of unexpected events or incapacitation. It's important to note that wills and other estate planning documents should be updated after significant life events such as aquiring more assets, getting divorced, or getting remarried. We often like to tell clients that a will is a document that should be updated and changed as your life changes.

An asset is property owned by a person or to which a person has certain rights. There are a multitude of assets that can pass by will at death, but the most common ones are real estate, homes, vehicles, investments, and bank accounts. Property can also pass at death outside of a will by beneficiary designation, such as life insurance and retirement benefits, and by transfer on death designation, such as investments and bank accounts. Property owned jointly with a spouse or others pass at death to the survivor rather than under a will.

To begin estate planning, speak to an attorney. At Bousquet Holstein, we have attorneys with extensive knowledge and experience in trust, estate and tax planning who are ready to help you take your next steps.

If you are not quite ready to start your estate plan, Bousquet Holstein frequently hosts free seminars about estate planning, where our attorneys are available to answer specific questions. You can find out about our next seminar by visiting our Trusts and Estates Practice Group page.

We understand how complex, challenging, and overwhelming estate planning can be. When navigating it, it is essential to have experienced legal counsel that is right for you. At Bousquet Holstein, we bring extensive experience in trust, estate and tax planning, ensuring that our clients will always have the help they need and their loved ones are protected.