Planning the unexpected

While the fact that we’re all going to die is known to many, no one wants to discuss this subject let alone face mortality. Unknown to most people is that living in denial only ends up costing you a lot of money in taxes and attorney fees. Estate planning is important whether you’re young, single or retired. But why do people keep putting it off knowing that it’s something they need to do?

Some common reasons given for the procrastination include:

The process is long

Due to the lack of information, a lot of people have the misconception that estate planning is intimidating and time consuming. A Denver estate planning attorney only asks you to fill in a questionnaire that indicates your assets and liabilities. During your initial consultation, your attorney will ask you who you’d like to appoint as your agent. It’s essential to carry any documents you’d want reviewed. Finally, the attorney will go through your suggestions and make the necessary recommendations.

An initial consultation can take 2 hours, after which you’ll have a follow up meeting to sign your documents.

I’m too young

Age is not a defining factor in estate planning. You may not have a lot of assets to list, but you would like to be able to appoint someone to take care of you when you become incapacitated.

It’s too expensive

This is a common excuse given considering the attorney fee and the cost of setting up a trust if you’d like one. Nonetheless, you do not have to part with a lot of cash as you can our chase the software or just buy forms. However, if you are in a complicated situation, it’s always best to hire an attorney.

I’m confused about the whole process

Choosing an agent who you fully trust can be daunting as it is confusing. If you do not have anyone in mind, you can appoint a bank representative, an attorney or even a trust company.

There are countless reasons given for procrastination when it comes to estate planning. To reduce the stress and the hassle that comes later on when you’ve died, it’s important to have an estate plan. Consult an estate planning attorney today for consultation.  Contact CJ Lee & Associates PC at (505) 728-7799 or email info@indianlaw.lawyer today.

Sources

http://www.investopedia.com/articles/retirement/10/estate-planning-checklist.asp

http://wealthmanagement.com/archive/estate-planning-primer

http://www.ascendfinancialplanning.com/dont-procrastinate-any-longer-estate-planning-is-necessary-and-simpler-than-your-think

No one is immune to aging or the loss of mental focus that may come with it, Furthermore, you may fall ill any day and be unable to handle any financial transactions or business in life, this includes making key financial decisions.  No one likes to think of such possibilities, but the reality is that almost every family faces such a situation. While financial and medical powers of attorney can’t prevent you from aging or accidents, they can make life easier for you and your family.

A power of attorney is a legal document that grants one the power to act in your place, in the event you ever become incapacitated.  This person is known as an “attorney in fact” or an agent.   Your attorney in fact is made to sign your name and is obligated to act in your best financial interest based on your wishes.

In estate planning, there are two types of powers of attorney, mainly the springing power of attorney and the durable power of attorney.

Springing power of attorney

This only goes into effects under circumstances you specified, common one being you become incapacitated. This means that your agent cannot act unless he/she provides a document proving that you are incapable of handling any finances or making decisions.

Durable Power of Attorney

This one is effective immediately and your agent does not need documents from court or the doctors to prove that you are incapacitated. An estate planning lawyer salt lake city can help you decide on which form makes sense in your current situation.

It is important to choose your agent carefully, as this should be someone trustworthy, competent and one that is willing to fully take on the responsibility.

In the case that you become incapacitated without having assigned the power of attorney, the court appoints a guardian who is paid annually to report on your situation.  This may cost your family over $1,000. To avoid such a scenario, it is best to discuss with your attorney about estate planning. He/she will guide through the process and the documents required assigning the power of attorney.

Sources

http://estate.findlaw.com/living-will/the-definition-of-power-of-attorney-living-will-and-advance.html

http://atg.sd.gov/seniors/estateplanning/powerofattorney.aspx

What is power of attorney and who assigns it? Read on to find out why its important and how your estate planning attorney can help you with the process and legalities.