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Skilled Estate Planning Lawyers Helping You Plan for the Future
Estate planning is often an overlooked legal concern that many individuals mistakenly believe is only for the very wealthy or older adults. In actuality, proper estate planning can be beneficial to most individuals regardless of income level or age. Planning now can protect your family’s future and give them peace of mind knowing that they will have the economic resources they need after your death.
If you have questions about estate planning or are ready to start planning for tomorrow, contact the Law Offices of Ericson, Scalise & Mangan, PC today to schedule an appointment. A qualified legal team member will gladly review your case and determine what options suit your needs.
When Should I Consider Creating an Estate Plan?
Once you turn 18, consider creating an estate plan that protects your interests. Although when you are just starting in life, you may not have vast financial resources, you should still have a plan as to who can make healthcare decisions should you become incapacitated.
As you grow older and begin to accumulate assets, you should update your estate plan to accurately reflect how they should be distributed. For example, establishing a trust protects your assets from creditors and lawsuits, and helps your loved one avoid probate.
Other life events that facilitate an estate plan include getting married, divorced, or having children. If you and your spouse divorce, you will need to update your beneficiary designations to convey your new circumstances. Once you have children, you will also need to appoint a guardian to care for them should you pass away.
How is a Will Different from a Trust?
While many understand the advantages of having a will, they are uncertain about how a will differs from a trust. To ensure that you make informed decisions, it is best that you understand the differences between a will and a trust.
Wills
In Connecticut, a will takes effect after the testator (the person who wrote the will) passes away. A will is also subject to the probate process so that it can be validated and the assets distributed to rightful heirs and beneficiaries. Probate can be time-consuming depending on the circumstances. Once a will is probated, it becomes a matter of public record, leaving it open to creditors who may try to claim a beneficiary’s inheritance. Writing a will does allow you to name a legal guardian for your children. Still, it does not offer protection against guardianship proceedings for the testator if they become incapacitated.
Trusts
Unlike a will that takes effect after the testator dies, a trust can become effective immediately. Once assets have been placed in a trust, they can be managed without having to wait for the settlor (the person who created the trust) to pass away. One of the most significant advantages of creating a trust is that assets placed in the trust are exempt from the probate process. Unlike a will, the details of a trust remain confidential and offer beneficiaries a greater level of privacy. Trusts are also the most effective solution for incapacity planning, as the trustee or successor trustee manages assets should the creator become incapacitated.
Can Proper Estate Planning Help My Family Avoid Probate in Connecticut?
The probate process can be costly and lengthy, causing your loved ones to have to wait for resources. That being the case, it is best to employ estate planning strategies that can help your family avoid probate.
Some of the most common estate planning strategies that can help avoid probate include:
- Creating a revocable trust: Once assets are placed in a trust, they are no longer considered to be your property and are therefore exempt from probate proceedings
- Joint ownership with right of survivorship: Any assets, such as bank accounts and real estate, held jointly with right of survivorship, can bypass probate and automatically transfer to the surviving owner after the other owner dies
- Beneficiary designations: Beneficiary designations on life insurance and retirement accounts allow individuals to quickly receive their assets without the need for probate
- Payable-on-Death (POD) and Transfer-on-Death (TOD) designations: Individuals can designate beneficiaries to receive the remaining balance of a checking, savings, or CD account upon the owner’s death and are not required to go through probate. Transfer-on-death designations serve the same purpose and are also free from probate
How Can a Power of Attorney Protect Me if I Should Become Incapacitated?
No one ever expects to become incapacitated to the point that they can no longer manage their financial affairs or medical care. The best option to protect yourself from being subject to conservatorship or guardianship proceedings is to designate a person you trust as your power of attorney (POA)
A durable POA can manage your financial affairs so that your family does not have to deal with expensive court proceedings that could easily lead to family disputes. A healthcare POA allows your designated agent to make medical decisions regarding your care should you be unconscious or mentally incapacitated.
One of the most crucial aspects of granting your agent a power of attorney is that it allows you and your family members to have peace of mind knowing that your wishes will be honored, especially regarding end-of-life medical care.
Contact our Berlin Estate Planning Lawyers Today to Schedule a Consultation to Learn More About Our Legal Services
Many people make the mistake of putting off estate planning until they are older or if they are having trouble managing their affairs. The best choice you can make for you and your loved ones is to create a comprehensive plan that will put your affairs in order and allow you to face the future with confidence.
Contact the Law Offices of Ericson, Scalise & Mangan, PC today to schedule a consultation to learn more about our legal services. For your convenience, you can call our New Britain office at 860-854-3809 or our Avon office at 860-854-3545.
