Providing Legal Guidance for Clients Looking to Preserve Their Legacy
Americans are living longer each year. In fact, the average life expectancy for those living in the United States is now 77.28 years as of 2023, with women living nearly six years more than men. As life expectancy increases yearly, many begin to think about ways of protecting their wealth and building a legacy they can pass on to their children and grandchildren. This is where estate planning can truly make a difference. More than just writing a will and tossing it in a drawer, estate planning can help you take care of your needs while you are still alive and record your wishes for property distribution after death – and that’s not all.
The Florida estate planning attorneys at Bloodworth Law, PLLC explain why everyone should have estate plans in place and go over what you need to know about estate planning in Orlando, Florida. If you have questions about estate planning matters or need help getting started with your planning process in Central Florida, reach out to Bloodworth Law, PLLC, at 407-449-8958.
What Is Estate Planning?
Estate planning is the process of combining different documents, tools, and strategies to protect your wealth and assets and record your wishes for how these assets should be distributed to the next generation after your death. It also helps to ensure that the people you love will be financially cared for and will receive their rightful inheritance after your death in accordance with your wishes.
Estate planning can also help to minimize tax liability and maximize your estate’s value. Certain estate planning tools, such as living trusts, can also help your estate avoid probate and provide protection against creditors. Estate plans are unique to each individual and should be periodically reviewed to ensure that the plans and tools are still aligned with your unique estate planning goals and that everything will still work as intended when needed.
Why Do I Need to Have Estate Plans if I Am Not Wealthy?
The classic movie plot that depicts a family gathered in an attorney’s office to hear the attorney read out loud the will left by their mysterious wealthy relative has become quite common in the minds of many, leading them to associate last will and testaments or any type of estate planning as something reserved only for the wealthiest citizens of our society. In reality, nothing could be further from the truth.
While many wealthy individuals focus on carefully planning their estate and having their affairs in order, this process is crucial for anyone who wishes to have a way of recording their preferences, both in terms of asset distribution and end-of-life or incapacitation medical care. Likewise, age is not a factor here – anyone can begin the process of estate planning at any time, regardless of whether we are talking about a young college student, a newly married couple, or a grandmother planning for her retirement years. While the exact estate plans may look different for each of these individuals, they are equally important regardless of age or financial status. In other words, estate planning truly is for everyone.
What Kind of Documents Do I Need for My Estate Plans?
As mentioned above, estate planning is a process as unique as the individuals behind it, and because of that, no two estate plans are alike. What may work for your family member or your friend may not necessarily work for you, so it is important to discuss your estate planning goals with an attorney to ensure that you are making the best choices for your future. That being said, some of the most common types of documents included in an estate plan are last wills, living wills, living trusts, and advance directives.
A last will (also known as a last will and testament) is the quintessential estate planning document. It acts as a written record of your wishes for asset distribution after you pass away. Your last will and testament contains a list of your assets and the corresponding beneficiaries that should receive those assets. Wills need to undergo probate before the estate administrator can distribute the assets to beneficiaries.
On the other hand, a living trust is a way of having more control over your estate assets while you are still alive. You may open a trust and fund it with a variety of assets during your lifetime. Trusts can be revocable or irrevocable and can fulfill a variety of specific purposes, such as shielding assets from debtors, planning for a loved one with special needs, or enabling the trustor to receive Medicaid benefits.
Finally, a living will and an advance directive are important documents that allow you to record your health care decisions for how you would like to be cared for while you are still alive but incapacitated and unable to make decisions for yourself. You may use these documents to explain your preferences for medical treatment and can appoint a person to act as your healthcare proxy. As you can see, estate plans can be essential to not only help you protect your wealth and define how your assets should be distributed after death but also to help you ensure you receive the care you need while you are still living. Ask an estate planning attorney about which types of estate planning documents are right for you.
Are Estate Plans Only Used for Asset Protection Planning?
As mentioned above, estate planning can do a lot more than just determining how your assets will be distributed after you pass away. It can help you preserve your assets, shield them from creditors, and ensure you have an inheritance to pass on in the first place. It can also help you plan for long-term care and allow you to record your preferences for medical care in case of incapacitation.
For example, consider the cost of extended care in a nursing home setting for someone with a debilitating condition, such as dementia or Alzheimer’s disease. In Florida, it is estimated that the average annual cost of a private room in a nursing home is about $48,000.00. Without proper planning, you can quickly exhaust all of your financial resources and your loved one’s financial resources should you need to receive long-term care in a nursing facility. An estate planning attorney can help you ensure that you can still access the care you need as you age without depleting your assets and jeopardizing your ability to leave an inheritance.
Another benefit of having basic estate planning documents in place (such as a will and an advanced healthcare directive) is the ability to choose certain people to fulfill important roles. For instance, as a part of your last will and testament, you can appoint a personal representative to handle your estate after you pass away. You can also appoint a guardian to your minor children should you pass away unexpectedly. You can even choose who should be the new owner of your pets after you die. With an advanced healthcare directive, you can choose the type of medical treatment you wish to receive and appoint someone to make decisions on your behalf while you are incapacitated. While estate planning is important to address property division after death, it can also help you be cared for while you are still alive.
What Happens if You Die Without Any Estate Plans in Florida?
If you die without a will or any type of estate plan in Florida, you will have died “intestate,” which means many of the assets you leave behind may need to undergo a process called intestate probate. During this process, a probate judge may appoint someone to be the personal representative of your estate, and your property will be passed on to your heirs according to Florida’s intestate succession laws.
These laws basically allow your property to be transferred to your closest relatives. For example, if you left a spouse and children, your assets would be distributed to your spouse. If you left children but your spouse has already passed away, the children will inherit everything. In very rare cases where no living relatives or descendants can be identified after reasonable efforts, the property is escheated to the state, meaning that it goes to the state of Florida.
There are many drawbacks to this process. First, even if you intended to leave any money for a grandchild, nephew, distant relative, or even a charitable organization, all of your assets that would normally be probated would be distributed in a single transaction to your closest surviving relatives.
Second, if you intended to exclude someone from receiving an inheritance or did not want this person to inherit anything until they became a certain age or achieved a certain milestone in life, you will not be able to do that because of Florida’s intestate succession laws.
Third, leaving no written record to guide your loved ones may result in unnecessary conflicts and delays, potentially exposing your estate to taxes and creditors and putting your relatives through a complicated probate process while they are already dealing with grief and all the challenges that come with losing a loved one. You would also be leaving important decisions in the hands of a probate judge, such as the appointment of a guardian to your minor children and the appointment of a personal representative for your estate.
The bottom line is that regardless of your age or economic status, having basic estate planning documents in place allows you to have greater control over how your assets are distributed, and can also serve as a guide for your loved ones to help them navigate the estate administration process during challenging times. An estate planning attorney can help make the process of writing your estate plans much easier and less stressful.
Is It Really Worth Hiring an Estate Planning Attorney?
It is understandable that many people would rather not think about what may happen after they pass away or even consider a situation in which they may be reaching the end of their lives. However, having the right plans in place can not only help you ensure your wishes will be respected but also make it easier for your family members to get through the situation, knowing that they are doing things the way you would have wanted them to do.
At Bloodworth Law, PLLC, our Orlando estate planning lawyers can make the estate planning process easier and less overwhelming. Our team can apply their extensive legal knowledge to guide you and to help you make the right estate planning decisions. If you have estate planning questions or are ready to get started, contact our law firm at 407-449-8958.