What Does an Estate Planning Attorney Do?

Estate planning is a process that ensures your assets are protected and distributed according to your wishes after you pass away or become incapacitated. It involves making important decisions about your property, finances, healthcare, and the well-being of your loved ones.

While you can create an estate plan on your own, working with an experienced estate planning attorney can provide numerous benefits and peace of mind.

Services Provided by an Estate Planning Attorney

An estate planning attorney offers a wide range of services designed to help you create a comprehensive plan for protecting your assets, providing for your loved ones, and ensuring that your wishes are carried out after your death or incapacity.

Drafting Essential Legal Documents

One of the primary responsibilities of an estate planning attorney is to draft the legal documents that form the foundation of your estate plan.

These documents may include:

1. Will: A will is a legal document that specifies how you want your assets to be distributed after your death. It also allows you to name an executor who will be responsible for managing your estate and carrying out your wishes.
2. Trust: A trust is a legal arrangement that allows you to transfer assets to a trustee, who manages the assets for the benefit of your designated beneficiaries.
3. Power of Attorney: A power of attorney is a legal document that grants someone else the authority to make financial and legal decisions on your behalf if you become incapacitated.
4. Advance Directive: An advance directive, also known as a living will, is a legal document that specifies your preferences for medical treatment if you become unable to make decisions for yourself.

Minimizing Estate Taxes

Another important aspect of estate planning is minimizing the amount of taxes your estate will owe upon your death. An experienced estate planning attorney can help you understand federal and state tax laws and develop strategies to reduce your estate’s tax liability.

Estates valued over a certain amount may be subject to federal estate taxes. Some strategies for minimizing estate taxes include:

• Making lifetime gifts to reduce the size of your estate
• Establishing irrevocable trusts to remove assets from your estate
• Utilizing the marital deduction to defer taxes until the death of the surviving spouse
• Taking advantage of the annual gift tax exclusion

Probate Avoidance

Probate is the legal process of administering a deceased person’s estate, which can be time-consuming, expensive, and public. An estate planning attorney can help you structure your estate plan to avoid probate whenever possible.

One common technique for avoiding probate is to establish a revocable living trust. When you create a living trust, you transfer ownership of your assets to the trust during your lifetime. Upon your death, the assets in the trust are distributed to your beneficiaries according to the terms of the trust, without the need for probate.

Other methods for avoiding probate include:

• Designating beneficiaries on retirement accounts and life insurance policies
• Owning property jointly with right of survivorship
• Using transfer-on-death (TOD) or payable-on-death (POD) designations for bank accounts and securities

Asset Protection

Asset protection is another key component of estate planning. An estate planning attorney can help you shield your assets from creditors, lawsuits, and other potential threats, ensuring that your wealth is preserved for future generations.

Some asset protection strategies include:

• Creating an irrevocable trust to remove assets from your personal ownership
• Establishing a limited liability company (LLC) or family limited partnership (FLP) to hold business assets
• Utilizing tenancy by the entirety ownership for married couples
• Maximizing contributions to retirement accounts, which are generally protected from creditors under federal and state law

Business Succession Planning

If you own a business, estate planning is especially important. An estate planning attorney can help you develop a comprehensive business succession plan that ensures the smooth transition of ownership and management to the next generation or other designated successors.

A business succession plan may include:

• Establishing a buy-sell agreement that outlines the terms and conditions for transferring ownership
• Creating a gifting program to transfer business interests to family members over time
• Implementing a family limited partnership or LLC to manage and control business assets
• Developing a management succession plan to identify and groom future leaders

How an Estate Planning Attorney Can Help You

In addition to the essential services they provide, an estate planning attorney can help you by:

Tailoring a Plan to Your Unique Needs

Every individual and family has unique estate planning needs and goals. An estate planning attorney will take the time to understand your specific situation, including your financial assets, family dynamics, and personal preferences. They will then craft a customized estate plan that addresses your unique concerns and objectives.

Navigating Complex Family Dynamics

Estate planning can be particularly challenging for families with complex dynamics, such as blended families, children from previous marriages, or beneficiaries with special needs. An experienced estate planning attorney can help you navigate these complexities and develop a plan that ensures all your loved ones are provided for in a fair and equitable manner.

For example, if you have a child with special needs, an estate planning attorney can help you establish a special needs trust. This type of trust allows you to provide for your child’s care and support without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI).

Ensuring Your Wishes Are Carried Out

One of the most important functions of an estate plan is to ensure that your wishes are carried out in the event of your incapacity or death. An estate planning attorney can help you clearly articulate your preferences and put the necessary legal mechanisms in place to guarantee that your desires are honored.

This includes:

• Designating guardians for minor children to ensure they are raised by the people you choose
• Specifying your preferences for end-of-life medical care, such as whether you want to be kept on life support or receive pain relief
• Naming executors and trustees who will be responsible for managing your estate and carrying out your wishes

Offering Ongoing Guidance and Support

Estate planning is not a one-time event but rather an ongoing process that should be reviewed and updated regularly. An estate planning attorney will provide continuous guidance and support, helping you adapt your plan as your life circumstances change.

This may involve:

• Reviewing and updating your estate plan after significant life events, such as marriage, divorce, the birth of a child, or the acquisition of new assets
• Responding to changes in federal and state laws that may impact your estate plan
• Providing peace of mind knowing that you have a comprehensive plan in place to protect your loved ones and your legacy

Finding the Right Estate Planning Attorney for You

When selecting an estate planning attorney, it is essential to find someone with the right combination of experience, knowledge, and personal skills.

Some key qualities to look for include:

• Extensive experience in estate law, with a track record of successfully helping clients achieve their goals
• In-depth knowledge of current federal and state regulations, including the New Jersey Uniform Trust Code, Uniform Probate Code, and tax laws
• Ability to communicate complex legal concepts in a clear, understandable manner
• Commitment to understanding your unique needs, goals, and concerns
• Strong problem-solving skills and the ability to think creatively to develop customized solutions
• Attention to detail and meticulous drafting skills to ensure your documents are legally sound and effective

At The Simone Law Firm, we are committed to helping our clients achieve their estate planning objectives through personalized, compassionate service. Our team of attorneys has extensive experience in all aspects of estate law, including wills, trusts, probate, tax planning, and asset protection. We take the time to understand each client’s situation and develop customized solutions that provide maximum protection and peace of mind.

If you are ready to take control of your legacy and ensure that your wishes are carried out, we invite you to contact The Simone Law Firm today to schedule a consultation. Our attorneys will work closely with you to develop a comprehensive estate plan that reflects your values, protects your assets, and provides for your loved ones.