9 Estate Planning Frequently Asked Questions
Estate planning sign on a wooden pier
I recently streamed 'The Beekeeper,' and Adam Clay is right at home with the John Wicks, Robert McCalls, and Bryan Millses of the world. While the movie was entertaining enough, with a few new elements and twists here and there to make it different, I was struck by a particular scene where a character asks: 'I'm 28 years old, why would I need an estate plan?' This article is inspired by that question and tries to answer other estate planning FAQs.
An estate plan outlines how your assets will be managed or distributed in case of your death or incapacity. It includes legal instructions on what you want done to your assets or properties, who will receive them, how much, or even when.
Aside from your assets, a comprehensive estate plan also incorporates instructions as to your healthcare and other responsibilities. The main goal of an estate plan is to be prepared and to ensure that your wishes will be followed.
Estate planning is crucial because it allows you to control how your assets are distributed after your death, ensuring your loved ones are provided for according to your wishes and minimizing potential family disputes.
It enables you to designate guardians for minor children, plan for incapacity, potentially reduce estate taxes and avoid the often lengthy and costly probate process. It provides peace of mind knowing that your affairs are in order and your family will be taken care of.
The specific documents differ based on the size and complexity of an estate, but the core ones include a last will and testament, a durable power of attorney, a healthcare proxy or advance directive, and possibly a trust.
The will is the most basic form of estate planning document. It tells how assets under your name and without beneficiary designations will be distributed. However, it does not avoid probate, so may need to use other tools such as a revocable living trust. The durable power of attorney, healthcare proxy, and advance directive allow you to assign other people to make decisions for you in case of your incapacity.
It depends on your circumstances, needs, assets, and financial goals, but you can start as early as 18 years old. When you reach legal age, your financial and medical decisions become your own. Since your parents do not have automatic authority over you, this might be a good time to set up a healthcare proxy or durable power of attorney.
It can never be too early to plan ahead and layout a basic will to tell your loved ones how you want your assets to be distributed. This is especially important if you already earn income or have other assets. As you age, your career and situation change, so you also have to periodically review and adjust your estate plan. Do this every three to five years or if there is a significant life change such as marriage, divorce, having children, or moving to a different state.
Writing a will is a good place to start your estate planning. Nonetheless, depending on your situation, you may need to secure other legal documents to ensure your wishes are followed and your assets and beneficiaries are protected.
Remember that estate planning is more than just asset distribution, it may also include healthcare decisions, incapacity management, probate avoidance, and tax planning, which are beyond the scope of a will.
Your assets will be distributed according to your state's intestacy laws. The process may lead to lengthy court proceedings and potential disputes between your family, friends, or other beneficiaries.
This is why it's important to at least have a last will and testament so your wishes are known and you can avoid intestacy.
It's possible but generally not advisable. While you can find online do-it-yourself estate planning guides and services, most experts still suggest working with a lawyer or other professionals.
An attorney can guide you through the intricacies of preparing the core estate planning documents, making sure they are legally binding. Depending on the complexity of your estate, you may even need help from other financial professionals in ensuring that you have a plan that not only reflects your wishes but also maximizes the financial benefits and minimizes taxes and other fees.
This is a common misconception, that estate planning is only for the wealthy. It's not. As long as you have assets or other property, you should have an estate plan. The value of you estate is immaterial. Of course, if you have a lot of assets, the tools and strategies you use become more complex.
You should also remember that estate planning isn't just about asset distribution. It also includes healthcare directives and other instructions for when die or if you become incapacitated. Just like building an emergency fund or saving for retirement, estate planning is an essential component of your personal financial management.
It will depend on the complexity of your estate and the kind of plan you want to make. For example, a simple will may cost around $200 to $300, while a comprehensive estate plan can range from $2,000 to more than $5,000.
Generally, DIY estate planning services are cheaper upfront, but as mentioned above, it's better to seek professional and legal guidance. Consider the costs an investment that will save you and your family from stress and other potential financial burdens later.
Estate planning is an essential part of personal finance. It ensures that your wishes are followed after you die or in the event of your incapacity. Regardless of your age or the amount of your assets, everyone needs an estate plan. It's a matter of being prepared for the inevitable, something that that character from 'The Beekeeper' movie failed to understand. Consult a financial advisor or estate planning lawyer for more information.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Angels Make Unfortunate Jorge Soler Announcement Before Yankees Game
Angels Make Unfortunate Jorge Soler Announcement Before Yankees Game originally appeared on Athlon Sports. The Los Angeles Angels beat the New York Yankees on Monday and Tuesday, but it was no thanks to outfielder Jorge Soler. The 33-year-old is just 1-for-9 in the series and is slashing .119/.196/.119 with three RBI over 13 games in June. Advertisement Los Angeles acquired the former All-Star from the Atlanta Braves on October 31 in exchange for right-handed pitcher Griffin Canning. The two-time World Series champion has had a successful career, as his next homer will be his 200th since entering the big leagues. However, he hasn't been close to the player he was in 2019, when he tallied 48 homers and 117 RBI for the Kansas City Royals. The Angels revealed an unfortunate Soler update before Wednesday night's bout with the Yankees, via The Orange County Register's Jeff Fletcher. Los Angeles Angels right fielder Jorge Soler (12)© Gary A. Vasquez-Imagn Images "Jorge Soler is out today with a stiff back. He's day to day," he reported. Advertisement Los Angeles is starting Luis Rengifo in right field while Mike Trout will serve as the designated hitter. The Angels won Monday and Tuesday's games by a combined score of 5-0, and they're 6-4 in their last 10. They're now a half-game behind the Texas Rangers for third place in the AL West and two games out of a Wild Card spot. Los Angeles will play New York again on Thursday before hosting the Houston Astros, Boston Red Sox, and Washington Nationals. After that, it will hit the road to face the Atlanta Braves and Toronto Blue Jays before hosting the Rangers and Arizona Diamondbacks. Related: Aaron Boone Sends Aaron Judge Message After Yankees' Loss to Angels Related: Angels Make Historic Announcement After Win Over Yankees This story was originally reported by Athlon Sports on Jun 18, 2025, where it first appeared.
Yahoo
12 minutes ago
- Yahoo
Danny Boyle admits he couldn't make 'Slumdog Millionaire' today because of cultural appropriation concerns
English director Danny Boyle said that he would not direct "Slumdog Millionaire" if it was made today due to "cultural appropriation" and would rather have a "young Indian filmmaker" make it instead. "We wouldn't be able to make that now. And that's how it should be. It's time to reflect on all that. We have to look at the cultural baggage we carry and the mark that we've left on the world... At the time it felt radical," Boyle told The Guardian. 'Snow White' Becomes Disney's Worst-performing Live-action Remake In Nearly 10 Years Set in India, the movie tells the story of Jamal, a young "slumdog" who's been selected to appear on the country's version of "Who Wants to Be a Millionaire?", and hopes to also find his childhood lost love, Latika. Throughout his appearance, events from his tumultuous life are shown in flashback and help him answer the questions. Released in 2008, "Slumdog Millionaire" was a hit with audiences and critics, grossing nearly $380 million on a $15 million budget and winning eight Oscars, including Best Picture and Director for Boyle. Denzel Washington Shuts Down Reports He Bailed On Cannes Film Festival After Red Carpet Incident Read On The Fox News App However, despite its success, the movie was controversial for appearing to exploit Indian culture and portray stereotypes of India from a western perspective. Some Indian critics enjoyed the movie, but some Indian artists were underwhelmed, claiming it was "saturated with stereotyped images of India," TIME magazine reported. Boyle added that while the film was in production over 15 years ago, he was sensitive to the exploitative implications of making the movie as a foreigner then. "We made the decision that only a handful of us would go to Mumbai. We'd work with a big Indian crew and try to make a film within the culture. But you're still an outsider. It's still a flawed method. That kind of cultural appropriation might be sanctioned at certain times," Boyle told The Guardian. He went on to say, "But at other times it cannot be. I mean, I'm proud of the film, but you wouldn't even contemplate doing something like that today. It wouldn't even get financed. Even if I was involved, I'd be looking for a young Indian filmmaker to shoot it." Boyle's other notable movies include "Trainspotting," "Steve Jobs," "127 Hours" and the "28 Days Later" horror series. The latest, "28 Years Later", was released on Friday. Boyle nor his representatives immediately responded to Fox News Digital's request for comment. Click Here To Read More On Fox NewsOriginal article source: Danny Boyle admits he couldn't make 'Slumdog Millionaire' today because of cultural appropriation concerns
CBS News
13 minutes ago
- CBS News
Petition calls for California to end policy allowing transgender students to compete in girls' sports
Some female high school athletes want an end to a policy that allows transgender athletes to compete in girls' sports, claiming it has created unfair competition. "Right here, right now, we are hand-delivering a petition signed by 20,074 people," California Family Council outreach director Sophia Lorey said. Female high school athletes, their families and supporters brought a petition to a California Interscholastic Federation meeting in Costa Mesa on Friday. The California Family Council organized the petition and a rally outside the meeting. On its website, the council wrote that its mission is "advancing God's design for life, family and liberty through California's church, capitol and culture." Among the athletes was Taylor Starling, who sued the Riverside Unified School District, claiming she was demoted from the varsity cross country team when a transgender student took her spot. "Girls like me are being told to smile, sit down and be quiet and give up what we've worked so hard for," Starling said. "And now, we're the ones being excluded from our own teams. Girls' sports were made to give us a level playing field. Right now, that's not happening in the state of California." Last month, CIF rules were changed at the state track and field championships, where Jurupa Valley High School transgender athlete AB Hernandez competed. Prior to the meet, a new policy was put in place allowing an additional female student to compete and medal in events where Hernandez had qualified. In a news release, a state spokesperson said CIF made the decision to pilot an entry process. "When girls are forced to share the starting line, the locker room or the podium with males, that's not inclusion," Lorey said. "It's injustice and California girls are paying the price." CIF said its mission is to provide students with the opportunity to belong and compete in compliance with the law, irrespective of the gender listed on the student's records.
