You may think creating a simple estate plan should be easy and something you can do independently. Unfortunately, this is not the case. Estate planning laws vary greatly from state to state, can sometimes be complicated, and constantly change. An experienced estate planning attorney stays informed about these nuances and changes, so you do not have to.
One wrong word, one missing signature, or one procedure not followed to the letter of the law can potentially render a last will and testament, revocable living trust, medical power of attorney, living will, or financial power of attorney ineffective. Also, certain planning tools are not available in all states. An experienced attorney can ensure that you are implementing the right tools correctly.
Though having an estate plan prepared by an experienced attorney may seem expensive, the value of the service and protections provided are worth the investment. With this investment, you are taking action to ensure that your wishes will be legally enforceable and followed so that your loved ones are taken care of in the way you want and that their inheritance is not left to the mercy of the courts or state law, or vulnerable to creditors, divorcing spouses, or lawsuits.
All that being said, here are three simple things you can do to help manage the cost of setting up and maintaining your estate plan:
- Come prepared. Before you meet with your estate planning attorney, do your homework. Understand what you own, what you owe, whom you would like to inherit your money and property, and who should manage your affairs if you cannot do so while still living (also known as being incapacitated) and after you die. If subsequent changes need to be made to your estate plan to realign it with your evolving goals and needs, make a detailed list of possible changes so that you and your attorney can be on the same page and address your specific concerns.
- Keep it as simple as you need. We want to ensure your estate plan legally expresses your wishes and is easy for your loved ones to carry out. Usually, the simpler your estate plan is (for example, your loved ones get their inheritances outright in one lump sum without any protections in place), the easier and more straightforward it will be for your attorney to draft and maintain. Generally, a more complicated estate plan (for example, a plan that includes continuing trusts, tax planning, or asset protection planning) will cost more, as it requires more time to prepare and a more experienced attorney. We caution you, however, from creating an estate plan that is overly simplistic and does not fully align with your goals just to save money on legal fees. A good estate planning attorney can recommend the “just right” estate plan to fit your needs without overcomplicating things and charging unnecessary fees for tools and features you do not need.
- Join your attorney’s estate plan maintenance program or sign up for their email newsletter. Some estate planning attorneys offer a periodic estate plan tune-up for their clients, sometimes called a maintenance program or client care program. These programs provide benefits to clients at a lower fee than if the client were to pay for these benefits individually. Alternatively, some firms offer email newsletters where you can learn more about estate planning, current developments in the law, and related topics. Being a part of a maintenance program or email list reminds you to think about your estate plan regularly (once a year or every few years depending on the terms of the attorney’s maintenance program, or on a more frequent basis depending on the firm’s email newsletter distribution calendar). Maintenance programs and email newsletters help you keep your estate plan current with changes in the law and your personal situation. Remember: an estate plan will only work to the extent that it continues to reflect your ever-changing wishes and needs.
We understand that creating an estate plan can be a large financial investment in your future. We are committed to working with you to create the best possible plan to meet your personal and financial needs. Give us a call to learn more about the types of tools we can put in place to care for you and your loved ones.