It is a widespread misconception that not everyone has an Estate. Every individual will have an Estate that will be determined at their date of death and will be comprised of all property they own. For example, this will include belongings such as a bank account(s), a car, some piece of jewelry, real property, and any other tangible or intangible property.

Estate planning purports to plan, arrange and organize one’s distribution of property (also called “assets”) at their date of death or upon an event. In other words, Estate planning consists of deciding in advance and determining what part of your property you will give and to whom. Obviously, Estate planning must be thought as a whole in order for the client to get the best of his property while legally reducing the amount of taxes, legal fees and court fees.

Estate planning allows an individual to determine who will benefit from their estate, who will obtain a specific portion of their assets, and to what extent. It purports to plan, arrange and organize one’s distribution of their property while strategically ensuring that the estate will not suffer from taxes or other claims which may burden the estate upon one’s date of death.
In addition to preventing disputes and burdening taxes, Estate Planning’s primary purpose is to encourage individuals to foresee in advance and resolve the potential risks or events that will undeniably occur. For example, death or illness.

Estate planning and Will planning are very different methods to get the best out of your assets in the future, although they are complementary and work together. Drafting a Will is an estate planning process, while Estate Planning can be achieved by drafting a will and using other tools such as a Power of Attorney, a Trust, and a Healthcare Proxy. Estate planning and Will planning each purport to set clear instructions to the court or your fiduciary regarding how your assets are. Will be distributed upon your death, but estate planning can go even further by resolving questions to come in the future regarding your health, finances, incapacity, and your living conditions.

It depends on your needs, objectives, and goals. Both a Will and a Trust Agreement are estate planning tools, but they serve different purposes. If they can work together or refer to one another in a logic of general estate planning, a Will and a Trust agreement remain very separate documents with significant differences.
The most apparent difference between a Trust and a Will is that a trust is effective upon its duly execution, as the grantor is alive. At the same time, the last will has effect only upon a testator’s death and proper probate proceeding.

If an individual dies without a Will, their property has to be distributed and passed as per the state’s laws of intestacy where the decedent was permanently residing before his death. For example, in New York State, if a decedent who died without a Will had a spouse and children, the spouse will be entitled to a portion of the decedent’s estate. Under such circumstances, the spouse will receive $50,000 in assets and half of the estate, while the decedent’s children will get the other half to be divided among them. If the decedent had a spouse but no children, the spouse will be entitled to the entirety of the estate.
If the decedent had no living children or spouse, his estate will pass to his grandchildren. Absent grandchildren, the decedent’s estate will be distributed to his parents. If the decedent’s parents are not alive, the decedent’s property will pass to the decedent’s siblings or their children…etc.

The cost of estate planning can vary based on your needs, objectives, financial situation, and attorney’s expertise. Therefore, your attorney needs to evaluate these factors before setting a price for the drafting and execution your Estate Planning documents.
Attorneys at Morgan Legal Group P.C. offer a free initial consultation to precisely assess your needs and discuss the cost of your Estate Planning.

If set and drafted correctly, a trust instrument offers several advantages by an experienced and specialized attorney. For example, a trust enables you to decide how your assets will be distributed before or after your death; it allows you to significantly and legally reduce applicable taxes such as gift taxes. In addition, it will enable you to protect your assets generally and let you name a person of trust (a fiduciary or trustee) who will manage your investments for you and under the directions set in your faith.
In other words, having a Trust can benefit you in many different yet effective ways.