With this upcoming Halloween season, particularly with the release of the movie It, there is a lot to be spooked by. While probate court might not be as scary as killer clowns, it certainly is something you’ll want to avoid at all costs.

So, What IS Probate?

Probate is a legal process and not a fun one, either. Probate is often referred to as “probate court” because the process is supervised by a court. Probate is what happens when a person dies without an estate plan. The court decides how to distribute your assets and debts, leaving you with no control.

You may think, “What do I care? I’ll be dead,” but remember that your family is going to be the most heavily burdened by probate. Avoiding probate court is a must.

What Does a Probate Court Do?

Probate court handles many other functions besides simple property distribution. Probate courts determine the executor of the estate, will authentication (if there is one), identification of beneficiaries, heirs, and/or decedents, payment of debts, and other important processes that you could avoid dragging your family into court for if you take the proper steps.

The probate lawyers do most of the work, but the executor supervises. The administrator (AKA executor) obtains necessary documents, hires the attorney, manages the process, cancels credit cards, pays off debts, and more. It is not an enviable job.

While some states do allow an avoidance of probate if your estate is below a certain net worth (in California, for example, the bar is $100,000), you will probably still have to go through a process, albeit a simplified version, that would be better avoided altogether.

The Terrifying Truth

The terrifying truth is that probate court is NOT something you want your family and loved ones to endure, even if you aren’t going to be around to care. Avoiding probate court involves creating an estate plan. Estate planning will help you get organized and plan for your future in the event of your demise. A well-prepared estate plan will protect your family from the court fees and time-suck that is probate court.

Estate planning attorneys are here to help. We aid you in managing the process, drafting the necessary documents, and counseling you on the best course of action depending on your situation and what your goals are.

When you leave the theater after seeing the latest scary movie, you can rest assured that none of those monsters actually exist in real life (or at least, we hope not). However, taxes, creditors, and the government do exist, and they will make your life a real nightmare if you don’t take the proper steps to avoid them. If you don’t want your loved ones to have to go through a horror movie of their own, you will need to make an estate plan.

In this article, we will discuss what taxes, creditors, and the government do with your property if you pass on without an estate plan.

But First, what is an Estate Plan?

After reading the above section, you may be wondering what an estate plan is. An estate plan is a set of documents and legal tools that aid in the distribution of a person’s assets and property during their life (when they are ill) and after their death. An estate plan usually contains three main documents, though there may be others. These three documents are a living will, power of attorney for healthcare, and a power of attorney for financial matters. These three will help you manage your healthcare when you are sick, your finances when you are incapacitated, and your property and assets after you die.

Some people choose not to plan their estate because they feel like it is too much work or unnecessary. They couldn’t be more wrong. Failure to plan your estate will result in probate court, which be a million times more work for your family, who is already grieving after your death (for more information on probate court, see our article: The Terrifying Truth About Probate Court).

What Do the “Real Monsters” Do?

Let’s say you don’t take our advice and, like every horror movie victim ever, make the wrong decision to not plan your estate. There are three boogeymen who are going to get you: taxes, creditors, and the government.

• Taxes. You can reduce taxes when you plan your estate. There are many different tax deductions and financial maneuvers you can engage in that will make the tax burden on your loved ones far less heavy. If you die without an estate plan, however, probate will take over and they will not care how many taxes your family is stuck with (and it will likely be a lot).
• Creditors. Creditors take over collection of your debt. If you die without an estate plan, your case will go to probate court. The main goal of probate court is to pay off creditors. Your family will get nothing, and your creditors will get everything. If you want to creditor-proof your estate, avoid probate.
• The government. If you die without an estate plan and don’t have decedents, beneficiaries, and other individuals listed, there is a good chance that the government will get at least some of your property.

Hopefully, this article has given you some insight into who the real monsters are and where they are hiding. The clown in It may have been lurking in the sewers, but taxes, creditors, and the government are hiding in probate court.

When you think of October, you might think of witches, warlocks, pumpkins, and cooler weather. However, what you may not know is that October is also Financial Planning Month, during which you can make a commitment to getting your affairs in order and tidying up your finances.

You can dig your own financial grave by doing nothing. You don’t even have to pick up your metaphorical shovel. Simply sit back and make no estate plan, and you will have dug your own financial grave, along with your family’s. In this article, we’ll talk about how you can commit to financial peace this October.

Estate Planning: The Horror Movie Antidote

The real monsters are taxes, creditors, and the government, and they all are lurking at probate court. If you die without an estate plan, your case will go to probate court. Probate will pay off your creditors and saddle your family with estate taxes in the event that they distribute your property to them. The process is lengthy, time-consuming, and expensive. October may be the month for scary surprises, but let’s avoid the unwelcome surprise that is your family having to go to probate court.

Estate planning will safeguard you against the horrors of probate court. Here is a brief overview of estate planning:

What to Know about Estate Planning

An estate plan allows you to decide where your assets will be distributed. It also gives directives on how to manage your care and finances if you are incapacitated. Here are the main documents included in an estate plan (though by no means is this list exhaustive).

• A living will. If you become incapacitated, chances are you don’t want the state to make your decisions for you. The government might not make the right choice when it comes to pulling the plug or not. A living will gives the hospital healthcare directives and information on your care that doctors can follow. Even if you are unable to give these directions yourself, the living will tells them how to manage your care.
• A financial power of attorney. If incapacitated, you will also want to ensure that your finances are managed appropriately. Appointing a financial power of attorney means you can pick someone you trust and know is responsible to be in charge of your money when you are unable to do so.
• A power of attorney for healthcare. A power of attorney for healthcare will also help you make healthcare decisions when you are unable. If your living will doesn’t cover something, this person (who you also pick), will be assist in making these decisions.

While estate planning isn’t the most Halloween-ish topic to discuss, it certainly is spooky to think about what happens if you don’t have a plan. Hopefully, this brief overview helped you to get a sense of what estate planning is and the many benefits that come with it.

            As Beyoncé told us, girls run the world! And Business Women’s Day is one of several holidays reminding us of that fact. Women have come a long way in the workforce. In 1950, one in three women were part of the labor force. By 2016, that statistic was three out of five, and, today in 2017, even more gains have been made in women’s leadership. While we still have some ways to go to make sure that the workforce is equal, particularly for women of color, there have been a lot of improvements. We don’t want to squander what our foremothers gave us, and estate planning is a women’s issue because it allows us to protect our hard-won assets.

Estate Planning and Women

To understand why estate planning is a women’s issue, it’s important to realize how little of an “estate” women were historically “allowed” to have. Even just up until forty years ago, women were still not given the abilities men had to control their own money. It wasn’t until 1969 that a U.S. court definitively ruled that labor jobs couldn’t not only be given to men, and firing women from factory work simply because of their gender was illegal.

Estate planning allows you to direct where your assets will go and how your healthcare decisions, financial choices, and other important directives are to be made in the event of incapacitation or death.

Here are some of the ways in which estate planning benefits women:

• Agency and Control

Things happen, and you want to be able to keep your property and assets where you want them, without being forced into a decision that would cause a loss of property. Estate planning gives you agency over your healthcare choices and financial decisions. There is no better way to be secure that what you’ve worked hard for won’t be for nothing.

• Peace of Mind

In the event of incapacity or death, the documents contained in an estate plan will give you a trusted person to make decisions for you. Your living will also contains directives that will tell the hospital and other personnel how to manage your care.

• Longevity

If you want, you can ensure that your money and property are invested or put into a trust fund that will keep them around for a long time to benefit your daughters and granddaughters.

Estate planning is a women’s issue, and, this September, make sure that you retain control over your assets and finances by creating an estate plan.

Football season is upon us, bringing with it cooler fall weather, pumpkins, warm coffees, sweaters, and many more of the great things we love about autumn. And, as any football fan knows, your favorite team is nothing without their playbook and, stored within it, all their carefully laid out plans. Without a strong playbook, a football team cannot hope to win any games.

Think of estate planning the same way. Estate planning allows you to plan what will happen to your possessions, valuables, business, and loved ones after you pass on. There are many reasons why people may not think to start planning their estate as soon as possible. Whether their hesitancy is because they don’t think they have an estate, aren’t old enough, or don’t know where to begin—these reasons should be cast aside in favor of some solid planning.

What Goes into an Estate Plan?

Much like the X’s and O’s in a football play book, there are key elements to an estate plan that you can expect to see throughout. Here are the three main documents:

1. Living Will and Testament

If you are incapacitated and receiving medical care, you will still want to make your own decisions, even in your diminished condition. A living will is a document that allows you to manage your healthcare via a directive. You give the instructions in the living will and testament, and these instructions must be followed.

2. Durable Power of Attorney

With a POA, you are the principal (donor) and, as this principal, you grant someone the capability to act on your behalf legally. If you become unable to make your own decisions, this trusted person can take over for you. If you pick someone you are sure will make good decisions, you won’t have to worry about any issues, even when you are incapacitated.

3. Health Care Surrogate

Your health care surrogate acts on your behalf in medical situations. Often, after becoming seriously ill, a patient is incapable of making his or her own decisions. Estate planning allows you to maintain control using a trusted decision-maker.

As any sports fan knows, you must have a strong playbook to succeed. Estate planning will ensure that your plans are laid out carefully, allowing you maximum security and peace of mind. Don’t drop the ball—contact an attorney today to get started on or update your estate plan.