Estate Planning: What to Think About Before Meeting Your Lawyer

In my real estate planning practice, it's not uncommon to meet new clients who want to prepare a real estate plan, but it is ambiguous about what to include in the plan. Quite often, the first conversation begins with something like “I want ... or do I need to trust? Do I need anything else?”. In fact, these are good questions to start the discussion.

Most people realize that their property plan needs to distribute assets when they die. Of course, it is an important element of real estate planning, but a well-designed plan needs to be considered further. Before meeting a lawyer for the first time, you also need to think about who wants to handle your problem when you become incapacitated. Whether you want your doctor to keep you alive when there is little chance of recovery and you are close to dead center. A person who wants to have the authority to sign important legal documents for you if you are absent. And someone who would want to raise your child if you suddenly died. There are a variety of personal situations that affect real estate planning, but please let me provide the following to consider before meeting a lawyer and discussing your real estate planning.

Do you need will or trust?

This is usually one of the first questions the client asks during the first meeting. Many people know that trust avoids probate, but that Appropriate funds This means that all assets are transferred to the trust. However, not all real estate plans require a trust, and if the wills meet your needs, there is no need for an attorney to incur additional costs to prepare the trust. And, contrary to what some people think, having trust not Avoid property taxes.

Trust may be the right choice for you if you are unlikely to get more assets in the coming years. But in many cases, what can happen is that people establish trust and then acquire new assets that fail to place trust. Then when they die out of trust assets, they must go through a probate that invalidates the intention to establish the trust in the first place. So take the time to consider your future investment plans and major acquisitions before deciding trust as a key element of your own real estate plan.

Trust has several other benefits that may be the right choice for you. For example, if you become incapacitated, trustees can intervene and manage assets without having to find a guardian appointed by the court. In that sense, trust documents are more comprehensive and flexible than normal will.

What else should I consider in my real estate plan?

Property planning is not just about deciding who gets your wealth when you die. It is also about deciding what you want to do if you are seriously ill or helpless.

All real estate plans must include advance directives that were once called living wills. With this document, you can appoint a healthcare professional to make a healthcare decision when you can't, such as end of life decisions.

Similarly, it is advisable to give a permanent power of attorney to a family member or trusted friend so that an appointed agent can manage your finances and business when you are absent or helpless To do. A permanent power of attorney should be valid as long as you live and should be valid even in the inability.

How about bank accounts, life insurance and investment accounts?

Careful real estate planning should include a review of all assets, such as confirming the beneficiary designations listed in the retirement plan, and verifying investment and bank accounts. With such beneficiary designation, these assets are transferred outside the probate process to the person previously designated as the beneficiary in these accounts. It is important to confirm the beneficiary designation to ensure that the beneficiary choice is in accordance with the current intentions regarding the disposal of the property.

You can get the maximum benefit from the meeting by thoroughly reviewing your portfolio and reviewing the above issues before you meet with a real estate attorney. It also helps your lawyer focus his or her discussion with you on the aspects of the process that are most relevant to your goals and needs.

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