Q: Can an estate planning attorney help me avoid probate?
Probate is a legal process in which a probate court supervises the distribution of a deceased person's assets to inheritors. Probate can be expensive and time-consuming, so people often want to avoid it to save their inheritors money. An estate planning lawyer will know strategies to avoid probate in your state.If you need help once you get to the probate stage, an estate planning attorney likely can help you. But make sure they handle probate matters. (See probate lawyers.)
Q: Why should I have a will?
A will won't help you avoid probate, but it's still a good idea for most people to have one—even if you have a trust. Some important reasons to have a will are:
- A will lets you decide who gets your property when you die.
- You can use a will to name an executor (the person who works with the probate court to make sure your property goes to the right people).
- If you have young children, you can use a will to name a guardian to take care of your children.
- You also can name a person to manage your children's property in your will. Property left to children, either by you or anyone else, must be managed by an adult.
- You can use your will to name someone to care for your pet, and you can leave money to that person to help care for your pet.
Q: Why should I have a trust?
The main reason to have a trust is to avoid probate, but trusts can be used for other purposes—such as providing for a child with special needs or avoiding taxes.
Q: What's the purpose of a financial power of attorney?
A durable financial power of attorney (“POA”) is a legal document that you can use to give someone the authority to manage your finances. People generally use POAs to make sure someone can make financial decisions for them if they become incapacitated and unable to make decisions
Q: What happens if I become ill and need someone to make medical decisions for me?
If you become incapacitated and can't make decisions about your health care, you'll need one or two documents—depending on your state's laws. These documents have different names, including living wills, health care powers of attorney, advance directives, and health care directives.
Q: Can an estate planning attorney help me avoid taxes?
For most people, estate taxes aren't a concern because only people with millions of dollars in assets need to worry about estate taxes. If you have a high net worth, then you should consider talking to an estate planning attorney about avoiding federal estate taxes. (Only a handful of states impose an estate tax.)