Losing a loved one can be a very difficult time. You might not know where to begin or what to do. The process can be very time-consuming and emotional.

Preparing an estate plan now will save your loved ones tens of thousands of dollars or more during their critical time of need, as well as minimize the tedious administrative burden they are faced with amidst their grieving process.

What Is Estate Planning?

Estate planning involves mapping out how you want to divide your assets after you die. Part of this process involves deciding ahead of time who should make financial and medical decisions for you if you become unable to make them on your own.

What’s included in an estate plan?

A will is a legal document that coordinates the distribution of your assets after death and can appoint guardians for minor children.

A trust is a fiduciary arrangement that governs your wishes for how and when to transfer assets. This includes sentimental items that would go to beneficiaries or charities of your choosing. A trust takes one of three forms: living, revocable, or irrevocable.

A power of attorney document gives someone the authority to make decisions about your finances, property, and medical care on your behalf.

An advance directive allows you to plan and make your own end-of-life wishes known if you cannot communicate.

Probate and privacy concerns

Another good reason to have an estate plan is to minimize the probate process and its expenses, delays, and loss of privacy. Among the concerns with probate are:

  • Loss of privacy: Anyone can access information from the probate court. For example, relatives and creditors could get your probate records to challenge your will.
  • Expense: Probate fees can be substantial, even for the most basic case not involving any conflict. Attorney’s fees and court costs may possibly take up to 5% of an estate’s value.
  • Delays: The average uncontested probate may possibly take longer than a year. With proper planning, these delays and costs, and the loss of privacy, can often be avoided.

The Benefits of Estate Planning

  • Protect your family from the inconvenience of a drawn-out 3–12 month probate period that will altogether avoid probate
  • Save tens of thousands of dollars or more by avoiding the expensive fees associated with probate