How to Avoid Probate: A Guide to Estate Planning

When it comes to estate planning, it’s important to understand the difference between trusts and wills, as well as the basics of probate avoidance. While it may be tempting to write your own trust or download a template, it’s highly recommended to consult with an attorney who specializes in trusts. Finding a trust specialist is relatively easy in states where the bar association certifies this specialty, but in other states, you may need to rely on the lawyer’s word.

Interviewing Attorneys and Setting Up Your Estate Plan

Before settling on an attorney, it’s wise to interview multiple lawyers to compare their recommendations for setting up your estate plan. During these interviews, inquire about the estimated timeline and cost. Avoid agreeing to an open-ended hourly rate, as the final cost is often higher than the initial estimate. Once you’ve chosen a lawyer, sign an attorney fee agreement, which is required in many states.

While some attorneys offer free initial consultations, others may charge a fee. Many attorneys provide a flat rate for a complete package, which typically includes:

1. The trust document itself: This document outlines your decisions regarding the trust, including the appointment of trustees, distribution of shares to beneficiaries, and provisions for distributions.
2. Personal property distribution list: This list allows you to designate specific items to be given to particular individuals.
3. Durable power of attorney: Each grantor should have a durable power of attorney, either immediate or springing, which becomes effective upon disability.
4. Medical power of attorney and advance directives: These documents specify your wishes regarding life support in terminal situations and appoint individuals to make medical decisions on your behalf.
5. Pour-over will: This will directs any assets not yet in the trust to be transferred to the trust and appoints a guardian for minor children.
6. Instructions for funding the trust: This includes sample forms for making transfers to the trust.
7. Deeds for real estate: If you own property outside your state of residence, additional steps may be required to transfer ownership to the trust and avoid probate.

After the attorney interviews, you should have a good sense of their expertise and feel comfortable working with them. If possible, request a draft copy of all documents before signing anything other than the attorney fee agreement. These documents are detailed and cover various situations, so it’s unrealistic to review them all during the initial consultation.

Conclusion

Estate planning is a complex process that requires careful consideration. By consulting with a trust specialist and following the recommended steps, you can ensure that your estate plan is well-prepared and tailored to your specific needs. Stay tuned for more valuable insights on how to avoid probate in our upcoming articles.

This excerpt is taken from “How to Avoid Probate for Everyone: Protecting Your Estate for Your Loved Ones” by Ronald Farrington Sharp. To read other articles from this book, click here. To purchase the book, click here.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors and are meant for general informational purposes only. This article does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.