Preparing for your future is the best way to ensure that things go as planned in the legal department. No one can accurately predict what will happen; however, taking preventative measures is a good step in the right direction. Many put off creating an estate plan until they are older, thinking that they will have plenty of time to do it later in life. However, this places them at risk of losing everything in the event of an emergency. The future may be unpredictable, but with an experienced estate planning attorney’s help, you can make sure that all of your bases are covered.

The Basics of Estate Planning

An estate plan has many moving parts, all of which are unique to each person or family. Some individuals decide to complete only one of the following legal documents, while others have an attorney help create them all: 

Designating a power of attorney (POA) is an area of estate planning that many individuals do not consider until it is too late. A POA is a legal document that gives a designated person the power to make financial or medical decisions for you in the event that you are unable to do so yourself. While this may sound risky, it is actually the most reliable way to ensure that your wishes are followed in cases of emergency. The best course of action is to fill out the legal documentation that lists your decisions with the help of an estate planning attorney. These declarations must be legally followed in the event you become incapacitated or cannot make decisions for yourself. 

POA for Healthcare

Having set decisions for your healthcare before an emergency occurs is crucial. Those looking into a POA must consider the importance of quality of life and the financial burden that medical procedures can create. Legal documents addressing these matters are also known as advance directives. Power of Attorney for healthcare is one of the most powerful types of advance directives, and the person who is authorized to make decisions for you can ensure that you are cared for according to your wishes. You can give your agent broad authority to act according to how they think you would like matters to be handled, or you can be specific about the types of decisions they are allowed to make and the care you would like to receive.

In life, it can be a good idea to plan ahead, since no one knows what the future holds. Estate planning is the process of arranging in advance for the management and disposal of your estate both while you are alive and after your death. Estate planning is crucial for your future as well as your family’s well-being. Wills and trusts are two of the most common legal documents that are created in the estate planning process. Both handle finances and assets, but they do so in different ways. Many families seek legal assistance to create one, if not both, of these estate planning tools to have peace of mind in regards to their future.

What Does a Will Do?

A will details what will happen to you and your assets after your death. It will state how you want your affairs handled and how your property should be distributed to your heirs. While many young adults and parents do not take the time to consider their own death, addressing these issues can ensure that your wishes are followed correctly. If you have minor children, you should take the time to appoint guardians to ensure that they will be taken care of by people you know and trust. If this is not decided before death, children may be placed into the hands of a family member who you would not want to care for their children. 

While a will documents your wishes for what will happen with your belongings after your death, a living trust allows you to determine how to handle your assets both while you are alive and after you have passed. In your trust, you may be called the “grantor,” “settlor,” or “trustor,” and you will be able to designate who will get your possessions. These people are called your “beneficiaries.” You will also name someone as your “trustee,” which means that he or she will be the one to ensure that your wishes are carried out correctly.

You may be your own trustee, or you can name a survivor trustee who will take control of the trust after your death. You may also set yourself up as a beneficiary of the trust while you are living, and you can add others as beneficiaries, including a spouse, children, or a friend. A living trust can be changed as you feel necessary at any time, or you may cancel it altogether. The trust will be empty until it is funded, which means that until you have transferred your assets to the trust, it will not go into effect.

When planning your estate and drafting a will, sometimes it will be necessary to create a power of attorney as well. How do you know when it is needed or whom you should choose? Although you may be doing well now, there may come a time as you get older or face unexpected medical issues that you will no longer be able to take care of your own bills and properties, and you may not be able to make decisions about your own personal care. At that time, it will be of utmost importance to have someone you trust to take care of these things for you.

What Does a Power of Attorney Do?

A power of attorney can be vital in protecting you and your assets. When you create a power of attorney agreement, you will name an agent who is authorized to make decisions for you, but your agent will only have as much power as you have laid out for him or her. In other words, you can choose for your agent to simply take care of your bills and property if you are somehow incapacitated, or you can opt for him or her to have more power, such as the authorization to give gifts or set up trusts on your behalf. 

You may also select a power of attorney to take care of your healthcare needs. Adults may create a power of attorney to name an agent who can manage their medical care and personal needs if they become incapacitated or unable to make their own healthcare decisions. As with a power of attorney for property, a power of attorney for healthcare can limit the decisions your agent can make or provide them with general authority to meet your needs.

Divorce comes with a long, long list of things that you need to do and items that you need to give consideration to. If you are getting divorced, one of the things that you should be thinking about is your estate plan and what the end of your marriage means for that plan. You are most likely going to need to change some things in your estate plan, but what should you be looking for? Here are three things that you should review and update following your divorce:

1. Power of Attorney

A power of attorney for finances allows another person to manage your affairs if you are unable to do so yourself. You and your spouse probably have executed a power of attorney at some point, but you should revoke this as soon as possible, as it may give your spouse access to your assets. This can be particularly important if the divorce is not going to be a smooth one. In addition, you may have executed a power of attorney for healthcare which named your spouse as a health care proxy, authorizing them to make healthcare-related decisions for you if you are unable to do so. You will likely want to revoke this authority as well following your divorce.

When someone dies and leaves a will, that will is probably going to end up going through probate, the legal process of proving, settling, and finalizing the will. The vast majority of wills go through probate without incident, but every once in a while, a will is contested for its validity. Typically, the person who is contesting the will is unhappy with the will in some way and attempts to have the will thrown out. 

Who Can Contest a Will?

In Illinois, a person must have “standing” to contest a will, meaning that they must be affected in some way by the will. The person must have a direct, financial, and existing interest that would be negatively affected if the will were to be accepted by the court.

According to the Illinois Probate Act, those wishing to contest a will must file a petition with the court within six months of the will being admitted to probate in order to have their petition heard. Any petitions filed after the six-month period will not be considered.

Nobody wants to think about their death. It is not an enjoyable idea to consider, and it is even less pleasant to discuss. Even though the topic is never fun, it is important that you begin planning for your family’s financial future as early as possible. Having a sound and solid estate plan can help you and your family have peace of mind by knowing that the future is well planned for. Here are some common estate planning mistakes that people make:

1. Not Having an Estate Plan

Statistics show that more than half of Americans have not made a will or plans for their finances after they die. Estate planning is not just financial planning--you are also planning for your own health and well-being. It also means that you are providing your loved ones with an organized inheritance and less stress when your time comes.

Most people do not know a lot about probate until a loved one dies, and the ones that do know about it think that it is a long and frustrating process. While the probate process can indeed be lengthy, it does not have to be frustrating or complicated. 

What Is the Probate Process?

Probate is the legal process that a deceased person’s estate goes through to be properly distributed to heirs and designated beneficiaries. Typically, a person’s property is distributed according to the deceased person’s last will and testament, but if there is no will, property is distributed according to state law. During the probate process, the following steps are taken:

1. File the Will in Probate Court and Notify Beneficiaries

The probate process begins when a petition is filed in the local probate court to place the will into probate and appoint an executor of the estate. If the deceased person did not have a will, the petition will ask the court to appoint a person as an administrator for the estate. The notice of the hearing must be given to all beneficiaries, which allows them to contest the will in court if they object to the terms of the will. The notice should also be published in a newspaper in the county in which the petition was filed. 

Nearly half of Americans do not have a will, and even less than that have an estate plan. It is not hard to see why, since nobody wants to think about what will happen when they die. However, it is important to plan for your family’s financial future. Almost everyone can benefit from having a will, but if you are not sure if you need an estate plan, here are some things to consider:

1. Children

If you have a child, it is important to decide what will happen to them in the event that you and your spouse die. In a will, you can name a guardian to take care of your child, but you should also state what assets the child might inherit and who is to take care of those assets until the child is old enough to gain access to them.

If you need something more extensive than a will, a trust might be the best option. A trust allows another person to hold assets on behalf of the person receiving them, and it can minimize estate taxes.