General FAQ::Estate & Trust Administration FAQ::Estate & Personal Planning::Business Organization FAQ::Guardianships FAQ

Estate and Personal Planning FAQ

Do I need a Will?

A Will may not be a necessity, but it can do a lot to eliminate or reduce the problems which might otherwise arise after your death.

In your Will, you specify what is to be done with your property at your death. Many people will commonly make special provisions for certain keepsakes or other valuables to go to selected individuals, rather than just relying upon everyone's supposed understanding of who is to get what. In addition, in your Will, you can nominate the person who is to serve as the personal representative or executor of your estate.

For families with small children, a Will can be extremely important. A Will is the document by which you can nominate someone to serve as the guardian for a minor child if neither parent is living. In addition, many families with small children will create a trust or other custodial arrangement in their Will, to hold and administer a child's inheritance for specific purposes, such as support and education, until a mature age.

What is a Durable Power of Attorney?

A Durable Power of Attorney is a document by which you can appoint someone to act on your behalf. You can grant them authority to act immediately, or in the event you later become incapacitated. The term "durable" means that it remains effective, even if you become incapacitated. A Durable Power of Attorney is commonly used to allow someone to make sure that bills are paid and that other financial affairs are taken care of in the event that someone becomes ill, and is not able to take care of such matters on their own.

A Durable Power of Attorney may also be used to grant someone the authority to act as a AHealth Care Representative and make medical decisions for an individual if he or she is unable to do so for themselves. The decision to appoint someone in that role ahead of time can greatly reduce the stress upon a family in time of illness.

A Power of Attorney can grant a great deal of authority to the person holding it. As such, it is important to give thoughtful consideration to the person chosen and the types of authority granted. In addition, it is important to discuss with the person holding the power the authority and corresponding duties which he or she has.

Do Living Wills actually work?

A Living Will Declaration is a document by which you can specify your wishes regarding certain medical decisions. Living Will Declarations commonly address end-of-life issues, like life-prolonging measures.

Perhaps the most significant thing that a Living Will Declaration does is inform your health care representatives B those making decisions for you if you cannot B what your wishes are. In that sense, Living Wills do work.

Some people are concerned that doctors and other medical providers will not abide by the Living Will Declaration. Each doctor or medical provider has his or her own thoughts about preserving life. The Living Will Declaration, consistent with Indiana's statute which authorizes them, does provide a procedural mechanism for compelling medical providers to comply with your wishes as stated. It is a good idea to discuss such matters with your physicians and other medical providers in advance of such a situation.

With tax exemptions increasing, do I need to consider taxes at all in creating a Will?

The Federal Estate Tax landscape is currently in a fluid state. It is difficult at this time to anticipate what the tax structure may look like in a few years. While the Federal Estate Tax may not affect your situation currently, it is not something which should be ignored.

The Federal Estate Tax is not the only type of tax to consider. Indiana imposes an Inheritance Tax, which may affect the way in which you choose to structure your estate plan. Income tax considerations, for you and for your beneficiaries, are also becoming more significant. Your estate plan should be based upon a comprehensive approach to both death and income taxes.

Should I avoid probate?

The term Aprobate refers to a couple of different subjects. It's most common use refers to the process by which the local court appoints a personal representative to administer an estate. The term in this sense has attained a somewhat notorious connotation. In reality, the process has significant benefit in finality and creditor protection. Furthermore, Indiana provides for what is known as Aunsupervised administration in many circumstances, which reduces the time, cost and hassle of probate administration.

In many instances, there is nothing to be gained from trying to avoid probate in this sense. There are a number of steps which are required of beneficiaries to transfer property upon death to intended beneficiaries regardless of whether the property passes as part of a probate estate or otherwise. Often, the appointment of a personal representative helps to make the process much smoother.

The term Aprobate also refers to the process by which the local court determines that a Will is properly executed and valid. After a period of time in which interested parties may contest the Will, the Will is confirmed as a legally-binding document.

Will a Living Trust save my family money after I die?

A Aliving trust or Arevocable trust is a mechanism for transferring property to others after you die. Generally, if you create a trust (by signing a document which spells out the terms of the trust), and transfer property into the trust, then the property will pass without being part of a Aprobate estate.

There are many instances in which a revocable trust can be an integral part of an individual's estate plan. However, great care needs to be taken by you or your professional, to ensure that the trust is properly drafted and that it reflects your intent. Further, care should also be taken to ensure that your assets are properly coordinated to pass into or through the trust to your designated beneficiaries.

When properly created and funded, the cost of administering a Living Trust or Revocable Trust after the death of the person who created it is generally in line with the cost of administering an Indiana unsupervised probate estate. Even through a trust, there are administrative matters which need to be taken care of, many of which are similar to an unsupervised probate estate. If the Trust is not properly created or funded, then the cost can increase, sometimes significantly.

How much does it cost to do estate and personal planning?

Each plan is unique, so it is difficult to say exactly what the cost may be. We strive to provide quality work products and services to our clients at a fair cost. We intend for our fees to be reasonable, considering what the client is provided. What you can expect is after an initial consultation to determine your objectives and intent, an estimate of what the cost will be to create the plan to give effect to your wishes and needs.