Many people want to know how much estate planning costs. The truth is that it really depends on what you get. Estate plans can be as cheap at $500 or as expensive as $5,000. It just depends on what’s in your plan. There is no specific amount since Estate lawyers charge differently. The charges may depend on several factors, but before I break down the costs, it is good to know the importance of an estate plan. The main reason as to why a person should have an estate plan is to protect his or her children, especially if they are under the age of 18. Nobody knows what the future holds. Uncertainties just come. Since a person cannot predict his or her death, it is good to have a will allocating your property to your family and also specifying on the person to take care of your children after your death.
What is an estate plan?
Estate planning is the act of arranging for the transfer of a person’s wealth and assets after his or her death. It is suitable for people to realize that everyone has an estate, especially if you working. An estate comprises of all your property including your car, your bank accounts, your investments, life insurance, furniture, your personal property not forgetting real estate. One acquires property after working since hard work pays. It is, therefore, reasonable to prepare on how your property will be distributed after your death or who correctly will inherit your property. This is done by writing a will. Estate planning is not only for retired or older adults, young people, especially those who are working and have property, are also included. Young couples who have just started families should also have an estate plan. It is undoubtedly true that no one would like to die at a young age, but then again, no one knows when he or she will die.
Sadly, a good number do not plan their estate simply because they think that they have time or feel that they are not old enough to do estate planning. Others lack people to guide them well since estate planning is a process, not forgetting that some ignore the whole thing and think that it is not essential. The idea of not planning your estate has a lot of dangers since after you have died, your family will be left with the consequences. Such situations attract cases of property disputes and even oppression of the family members by the relatives of the deceased. As the old age states, prevention is better than cure. It is, therefore, wise to take precaution. There are two things in which people should take into consideration when writing a will. They may include:
passing your values on
These values may include hard work, religion, or education. A person may use this as a chance to advise his or her family, especially if he or she has set the pace. Spirituality is, so it may be useful to encourage the people that you are leaving behind never to forget God. You may also emphasize the importance of hard work in life in all aspects that are in school at work or anywhere where effort is required.
The person to take care of you in case you become disabled
When writing a will, it is good to remember that life is full of calamity. A person should, therefore, specify the person to take care of him or her just in case something happens, and he or she becomes disabled.
Reasons why a person needs an estate plan
1. It helps you choose the people to inherit your assets
An estate plan enables you to distribute your property well. This will save your family a lot of trouble after your demise. Without an estate plan or a will, the court decides typically on the people to inherit your property. The process may not be and may lead to a lot of trouble since people who do not deserve inheriting your property may be given your assets. Cases of property grabbing may also arise. To save your family a lot of problems, it is therefore wise to have an estate plan.
2. It enables you to decide on a guardian for your children
Everyone loves and cares for his or her children. No one would like to hear or even catch a glimpse of their children suffering in their absence. An estate plan enables you to take a look at the people who are surrounding you to make the right decision on who will take care of your children when you will be deceased. A person should choose a person who he or she is sure has the qualities of being a good parent. He or she should be a person you trust; otherwise, your kids may face it rough in your absence. In addition to that, one should talk to the potential guardian to see their willingness to take care of his or her children.
3. It will help your assets remain in the family in case your spouse remarries
In some cases, it may be hard for bereaved couples to stay alone, especially if they have young children. Some may opt to get married again to have a companion and a person to help them raise their kids. Remarrying is not a bad idea, since a person may be having genuine reasons. The only problem might come in if the deceased spouse had not written a will. This is because he or she may take control of property that does not belong to him or her. A will, therefore, helps the rightful inheritors in the family to own the property meaning that the property will remain in the family.
4. You will be able to choose your executor
An estate plan is useful since a person can choose his or her, personal estate representative. This is the person who will ensure that whatever is written in the will is executed. Choosing an executor for yourself is better than being selected for by the court in your absence. Other duties of the executor may be paying debts and having the power to liquidate your assets and dividing the money. The person you choose will have a significant impact on how your will shall be carried out, but a personal decision is better compared to a decision made by another person.
5. For general peace of mind
Once a person has taken an estate plan, he or she can relax and await his or her death. Since nothing comes easy, the process itself may not be easy, but at the end of it all, there is a peace of mind. It is good to stay knowing that your family will not suffer in your absence. You will have already distributed your wealth and will have known who will get what. An estate plan is, therefore, fundamental.
Costs that are incurred as a result of estate planning in Utah
When it comes to standard charges, there are two things to put into consideration. The first cost is incurred when an attorney starts preparing the legal documents after evaluating a persons financial and family’s lifestyle. This may cost 850 – 1850 dollars and can run up to 2050-3050 dollars or even more. These costs are determined by factors such as where the person resides and other complications. The additional cost incurred is when acquiring books covering the basics of estate planning. This may cost 10-100 dollars. A person may use a do-it-yourself estate planning kit which may cost 10-60 dollars and estate planning computer software which may cost 20-250 dollars.
What to include when doing estate planning
The four essential estate planning tools are a will, durable jurisdiction of attorney, a living will, and a healthcare proxy. In addition to the above tools trusts, how assets are owned insurance and gifting may be included. A lawyer will help you review your current situation and your long term goals and help you create an estate plan using the stated tools. The goal is to maximize your financial security during your working and retirement years while planning so that when you die your money, assets and other things will be distributed according to what you specify. A will constitutes of items such as the selection of an executor who carries out provisions of the will, the people who will inherit your property, instructions on how and when the beneficiaries will receive the assets and guardians to take care of young children who are below the age of 18 years. A durable jurisdiction of an attorney means that the document is useful if the owner of the property becomes debilitated and not able to hand matters on your own. A healthcare proxy is a document with which a patient that is the person making the estate plan chooses another person to legally make healthcare decisions on behalf of the owner of the will when he or she is incapable of creating and executing the healthcare decisions specified in the proxy.
Additional Estate Planning Costs
There could be some additional charges if a person owns a sizable property or has a business. There is a need for a person to consult with his or her accountants or other people who are professional in financial matters since this is part of the estate planning process.
If you have an estate lawyer, charges are incurred especially for those working on an hourly basis since for any time they spend answering your inquiries either by phone or via e-mail there is usually a charge since charges are generally done in quarters or tenths of an hour. In addition to that, expenses related to the case such as photocopies, research, and interviews may also attract charges.
A person should ask about the lawyer’s experience and the training that he or she has acquired in estate planning law. A person can get referrals to lawyers through the American Academy of Estate Planning Attorneys. The lawyer should give you a written fee agreement. A person should therefore read and understand not forgetting that he or she should take note of any additional charges to be on the safe side.
There are several ways on how to save for estate planning though there are certain factors such as the attorney and geographical location which matter. Here are some of the ideas on how to save for estate planning.
Understand what you need
Before making any decision, a person needs to think critically. So, it is good to talk to people who are professional in the finance sector or read widely on estate planning to get a clear scope on what is supposed to be done.
Talk money upfront
A person should talk to the potential estate attorney even before meeting them to determine how he or she charges. Lawyers may charge on an hourly rate or flat fee service. It is good to make inquiries if the lawyer asks for a free consultation or not. Others may charge the fee; others may not. For the attorneys who charge at an hourly rate, it is also good to know the exact charges. A good estate lawyer should be able to give you a rough estimate of the amount needed by you and your family.
Choose an appropriate attorney for you
When it comes to choosing the right lawyer, being inquisitive is needed. You need to ask some questions to know if the lawyer has handled a similar case because at the end of it all you need an experienced attorney. A special bond is also required between the client and the attorney because the attorney will be dealing with family issues. In short, experience and empathy are needed.
In conclusion, one has to incur a cost during estate planning. To some people, it may be expensive, but to others, it may not be that costly since we come from different social backgrounds. Everything aside, the bottom line is that estate planning is essential and should be undertaken by anyone who cares about his or her family.
Free Consultation with an Estate Planning Lawyer
If you are here, you probably have an estate issue you need help with, call Ascent Law for your free consultation (801) 676-5506. We can help with Durable Powers of Attorney. Health Care Directives. Last Will And Testaments. Revocable Living Trusts. Dynasty Trusts. Irrevocable Trusts.
Estate Administration. Probate Administration. Probate Disputes. Estate Litigation. And Much More. We want to help you.
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West Jordan, Utah
84088 United States
Telephone: (801) 676-5506