Simply stated, estate planning is the process of deciding what will happen to your assets and dependents
in two scenarios; in the case of incapacitation and in the event of death. The process involves selecting
trusted individuals to step into key roles and responsibilities should either event come to pass, and the
creation of legal documents like wills, trusts, powers of attorney, and guardianships for minors to help
dictate who will manage the assets and how they will be distributed.

A person’s estate encompasses all that they own and all that they owe. This may include your home,
rental real estate, personal belongings( such as jewelry, automobiles, furniture, artwork, heirlooms), bank
accounts, retirement accounts, stocks and other securities, business interests, annuities and life
insurance policies. It also includes who can access your cryptocurrency and digital assets such as social
media accounts.

Anyone who has reached the age of 18 can benefit from estate planning. Although some estates may
have more complex needs than others, much can be done for younger adults or those with varying
degrees of assets. Planning for unforeseen events, such as incapacitation from an illness or accident, is
an important thing for adults of all ages to consider.
Many clients start off by establishing powers of attorney, such as medical directives and living wills for
themselves, and guardianships for their minor children. Creating these documents is a simple process
that provides much peace of mind while laying a foundation that can be built upon as needs change over
time.

When a person dies intestate, which means to die without a Last Will and Testament, certain challenges
arise that could have easily been avoided. First, your estate will become subject to probate and the
state’s intestate succession laws, meaning that the state will now be the one to determine who manages
your assets and who your beneficiaries will be. Dying intestate means that you gave up the power to
decide these things for yourself. You will not be able to disinherit anyone or leave assets to a friend or
charity. If no clear guardian exists to care for minor children, the court will take control of the minors until
they decide where the children will go. Additionally, in the case of unmarried partners, the living partner
will have no legal say or ownership over the assets of their partner. The probate court must follow a strict
formula to distribute assets to family members.
The probate process can be lengthy, stressful and expensive. It is often fraught with disagreements
between family members with differing views on how things should be handled. Estate assets are used to
pay for the cost of probate, often leaving very little at the end for those involved.

Probate is the court process of establishing validity of a person’s will. If a will exists, a Personal
Representative named in the will shall be appointed and tasked with transferring estate assets to the
appropriate heirs. It is important to note that certain assets mentioned in a will may still be subject to
probate.
If no will exists then the court will use state intestacy laws to determine how to pass assets to the proper
heirs. Probate is a matter of public record so there is very little privacy to be expected. Some of the costs
involve court fees, account fees, asset appraisal and valuation fees, attorney fees, and fees paid by the
executor

Cash and all cash accounts without a Transfer of Death (TOD) designation will go through probate.
Personal property including valuables and collectibles, real estate, assets held as tenants in common,
and accounts that had an option for a beneficiary designation but were left blank or improperly filled out
will also go through the probate process.
Assets placed in a trust, (including those that normally would have had to go through probate), assets
with properly named beneficiaries (such as accounts with proper TOD designations), and retirement
accounts usually will avoid probate. In cases where an asset may have conflicting information regarding
what it said in the will and the beneficiary designation, the beneficiary designation may override the will.

A will is a legal document that describes in your own words how you would like your assets distributed
after your death. No powers are put into action until then. A will should name a trusted person as
Executor. This key individual will be the one responsible to carry out the provisions of your will. A will
should also account for the guardianship of minor children, other individuals under your care, and for pets
who may otherwise end up in limbo.
A Trust operates very differently than a will. A trust becomes active immediately upon signing the trust
documents, and can be administered during a person’s lifetime. It provides for a fiduciary arrangement
where the trust holds assets on behalf of one or more beneficiaries. Trusts may help keep assets out of
probate while providing tax benefits to some estates. Trusts can establish preferred methods of asset
distribution to beneficiaries including charitable organizations.

Even those with a living trust may opt to add a will as an additional safeguard. A "Pour-Over Will" is
designed to capture any assets that may not have been transferred to the trust during a person’s lifetime.
It is not uncommon for some assets to be overlooked despite our best intentions, which is why having a
“Pour-Over Will” is worth considering.

For direct gifts to charity, a mention in your will may be all that is needed. This works well in
circumstances where a person is not concerned about tax benefits, legacy planning or controlling how the
gift is used. It is a simple process anyone can use.
For many, and for those with larger estates, it is strongly advised to consider the strategic use of trusts to
realize your philanthropic vision. Specialized vehicles such as Charitable Lead or Charitable Remainder
Trusts offer significant tax benefits and control over how your gift will be distributed over time.