What is Estate Planning?
No matter your age or stage of life, it’s never too early to make your wishes known. Estate planning is the process that clearly outlines your wishes and releases the burden from your loved ones and ensures control doesn’t default to the state or someone you don’t want to take your assets.
Who Needs an Estate Plan?
Short Answer: EVERYONE. Nearly everyone has an estate, which consists of everything you own: your home, your car, real estate, checking and savings accounts, investment accounts, retirement accounts, life insurance policies, personal property, and more. Regardless of the amount of property you own or its value, you cannot take it with you, when you die.
You don’t have to be wealthy, elderly, or have a specific amount in your bank account to justify the need for a valid estate plan. Did you know you can start as early as 18 years old? If you are over 18 years old you should at least start thinking about creating a plan.
Estate planning is an important step for every family. Whether you are to pass suddenly or be incapacitated for an unknown reason, an estate plan can outline exactly what you want to happen for your future and with your children the moment a tragedy strikes you, what you want the following weeks to look like for you and your children, and how you want their care provided for until they are old enough to mentally, financially, and physically care for themselves. Estate planning is truly an amazing tool to care for you and your children beyond your personal ability, should a tragedy ever strike your family.
What Estate Planning Documents You Should Be Considering?
Guardianship
Will
Trust
Financial Power of Attorney
Durable Power of Attorney
Advance Healthcare Directive
Life Insurance Policy
What Taxes Are Associated with Estate Planning?
Estate Tax
Inheritance Tax
Gift Tax
What Happens If I Do Not Have an Estate Plan?
In Oklahoma, as in all states, the government has a plan to divide your estate, if you have not put an estate plan in place.
If you’re unable to conduct business on your own, due to physical or mental incapacity and your name is on the tile of an asset, the court will appoint someone to act on your behalf in your business or on behalf of your business. The government, through the courts, will control and supervise your assets and a conservatorship (in some states) or a guardianship (in Oklahoma and many other states) will decide how your business, assets, and care are handled. This process moves much slower than your business needs arise and can be very expensive. The process will likely be public record and may make it difficult for your business to ever recover from the delays and exposure.
If at the time of your death, you did not have a valid estate plan, everything in your estate will be distributed according to Oklahoma intestacy laws. The court will conduct a slow and likely expensive supervised probate proceeding. Your spouse and children will each receive a share of your estate, regardless of their age or your relationship to them. Meaning, your spouse could receive only a fraction of your estate, which is insufficient to live on or conversely your spouse could take more of your estate than you desire and your children may be left with very little. The court will control the inheritance of your children and if they are minors, the court will decide who will become their guardians, if they are minors and if both parent die.
Remember the goal is to protect your legacy and leave the absolute most for your heirs.
You are already taking the steps in the right direction by reading this article. For more information on protecting your legacy and creating an estate plan, please contact the Law Office of Cathryn D. Gibbs or book a consultation online.
DISCLAIMER: The information and materials on this website are provided for general informational purposes only, and are not intended to be legal advice. No Attorney- Client relationship is created by use of this website. Filling out a form on this site or sending an email does not establish a client-lawyer relationship. In accordance to policy, The Law Office of Cathryn D. Gibbs, PLLC does not accept a new client without first obtaining a signed engagement agreement.
Comments