Estate Planning

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FPP Financial visitors can explore EstateDocsPro, an independent online estate-planning document platform that uses documents developed by estate-planning attorneys and guides users through a self-directed process.

EstateDocsPro is an independent third-party service. FPP Financial and Dylan Foster are not a law firm and do not provide legal advice. Estate-planning needs vary, and users should consult a qualified estate-planning attorney regarding their individual circumstances.

WHAT IS AN ESTATE PLAN?

Estate planning is the process of documenting how your assets, healthcare decisions and personal responsibilities should be handled during your lifetime, if you become incapacitated and after your death.

A complete estate plan may include a will, trust, financial power power of attorney, healthcare directives and properly coordinated beneficiary designations. Life insurance and other financial accounts may support your broader legacy goals, but they do not replace appropriate legal documents.

FPP Financial provides education and planning coordination—not legal advice. We encourage clients to work with a qualified estate-planning attorney to determine which documents and strategies are appropriate for their circumstances.

Top 10 Reasons for an Estate Plan?

Document how you want your assets distributed.
Name trusted people to manage financial and healthcare decisions if you become incapacitated.
Nominate guardians for minor children.
Coordinate beneficiary designations with your overall wishes.
Provide instructions for the management or transfer of a business.

Create appropriate provisions for children or beneficiaries with special needs.
Reduce confusion, delays and family disputes after your death.
Address privacy and probate concerns through appropriate legal planning.
Plan how and when beneficiaries receive inherited assets.
Make administration easier for the people responsible for carrying out your wishes.

WHAT HAPPENS IF I DON’T HAVE AN ESTATE PLAN?

Without an estate plan, state law and existing account ownership or beneficiary designations will determine much of what happens to your assets. A court may also need to appoint someone to manage your financial affairs, healthcare decisions or estate if you have not documented your choices.

This can create additional delays, expenses and uncertainty for your family. A properly prepared plan helps identify who should act on your behalf, who should receive your property and how your wishes should be carried out.

Because estate and probate laws vary by state, consult a qualified estate-planning attorney regarding your individual situation.

IS MY WILL GOOD ENOUGH?

That is great and a good start. Unfortunately, a will still must go through probate/court to be deemed valid, which takes many months to years, and that is if no one contests it, including Uncle Sam. In the meantime, no one has access to your assets, business, or estate if you didn’t have a plan set in place. Plus everything is now public record.

A will is an important part of many estate plans, but it may not address every need. A will generally takes effect after death and does not, by itself, provide instructions for financial management or healthcare decisions during incapacity.

Assets held jointly or controlled by beneficiary designations may also pass outside the terms of a will. Depending on your circumstances, an attorney may recommend additional documents such as a trust, financial power of attorney or healthcare directives.

IS IT EXPENSIVE TO MAKE AN ESTATE PLAN?

The cost of estate planning varies based on your state, family circumstances, assets, business interests and the complexity of the documents required. A straightforward plan may cost less than a plan involving multiple trusts, special-needs provisions, business succession or complex tax considerations.

Online document platforms such as Estate Docs Pro that we use, may provide you with a much lower-cost estate planning option.

FPP Financial does not prepare legal documents or charge legal fees. We provide education and can encourage coordination with qualified estate-planning professionals through Estate Docs Pro.

HOW OFTEN DO I NEED TO UPDATE MY ESTATE PLAN?

Review your estate plan periodically and whenever a major life or financial change occurs. Examples include marriage, divorce, the birth or adoption of a child, the death or incapacity of a beneficiary or decision-maker, moving to another state, buying or selling a business, or experiencing a substantial change in assets.

Many professionals recommend reviewing an estate plan at least every three to five years, even if no major event has occurred. A qualified estate-planning attorney can advise whether changes in your circumstances or state law require updates to your documents.

DO I NEED AN ESTATE PLAN?

If you answer YES to any of these questions below, then you need an estate plan.

DO YOU HAVE ANY MINOR CHILDREN?

An estate plan allows you to appoint a guardian to care for your children’s welfare if you are unable to do so yourself. You can also create a trust to provide for them financially while they are minors.

DO YOU NOT HAVE ANY CHILDREN?

If not, you need an estate plan. For most people, their children are their heirs. If you do not have children and have not done any estate planning, then your estate may go to some accidental heirs. Drafting an estate plan will prevent your estate from going to unintended or undesirable persons. Additionally, children are often who most people count on to help with our medical and financial decisions as we age. Not having children creates a vacuum, of sorts, whereby there is no one available or even permitted to help you with important decisions. An estate plan allows you to appoint someone to help you with such decisions.

DO YOU HAVE ANY SPECIAL NEEDS CHILDREN?

If so, you need an estate plan. Specifically, you likely need a special needs trust. A special needs trust is tool designed to hold assets for a person who suffers from a physical or mental disability. Special needs trusts are used to pass wealth to a disabled person without interfering with his or her Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing. Without a special needs trust, your special needs child or heir could lose their entire inheritance.

DO YOU HAVE ANY ASSETS?

If you own any cars, boats, homes, checking, savings, life insurance, furniture, prized possessions, or any type of investment then putting together an estate plan would be recommended if you want your loved ones to have access to these according to your directions vs having the state decide who gets what. Which may not be even close to what you would have wanted.

DO YOU WANT TO CONTROL YOUR MEDICAL DECISIONS?

If so, you should create an estate plan. As we age, some of us may become incapacitated and unable to make decisions regarding our own medical care. Preparing a living will and medical power of attorney will allow you to communicate your wishes regarding healthcare to your loved ones. Ensuring your wishes are known and followed. Sad statistic: In the U.S., someone is diagnosed with Alzheimer’s every 66 seconds!

DO YOU OWN ANY HOMES / PROPERTIES?

Our home and investment properties are some of our biggest investment assets. Without proper planning, your homes and properties could end up in the court system should tragedy ever strike. An estate plan can prevent your biggest assets from being tied up in court. Using a revocable trust can save your heirs thousands of dollars in legal fees and court costs.

DO YOU VALUE YOUR FAMILY’S PRIVACY?

One of the benefits of a trust is that your family gets to avoid probate, which keeps your assets private.

DO YOU OWN ANY BUSINESSES?

If so, you know the sacrifices you made to make your business succeed. Without proper planning your business could be left without a leader. Most business cannot survive the chaos that follows a lack of leadership. An estate plan allows you to appoint a decision maker to ensure your business continues to thrive if you are unavailable.

DO YOU WANT TO MAKE LIFE EASIER ON YOUR FAMILY?

Creating an estate plan allows for an orderly and efficient transfer of your wealth to your heirs. Without an estate plan, your heirs will likely have to spend unnecessary time, money, and energy in probate court trying to claim what is rightfully theirs.

DO YOU HAVE A BLENDED FAMILY OR CHILDREN FROM ANOTHER RELATIONSHIP?

An estate plan is particularly important if you have children from different marriages. Without a plan, your estate will be distributed under the default rules of intestacy. Depending on your state, the laws of intestacy will give most—if not all—of your wealth to your spouse. This alone may not be a bad proposition. But remember, when your spouse passes, his or her estate including assets received from you, will go to your spouse’s heirs—leaving your children empty handed. Preparing estate plan can prevent your children from being left in the cold.

DO YOU WANT TO PROTECT YOUR ASSETS AND HEIRS’ FROM CREDITORS?

One of the benefits of a trust is that it can contain something called a spendthrift provision. A spendthrift provision can protect your children’s inheritance from unsavory creditors.

DO YOU WANT TO CONTROL WHO GETS WHAT, WHEN, & HOW AFTER YOU PASS?

Do you have an heir who is irresponsible with money, or who is perhaps suffering from addiction? An estate plan allows you to leave specific instructions as to how an heir will receive their inheritance. Monthly or yearly installments? Upon the completion of a goal? An estate plan provides an opportunity to put a plan in place to address your specific needs. This can be instrumental in protecting a child or other loved one from themselves.

If you answered yes to one or more of the above questions and you don’t already have an estate plan established, then it is time to get your estate plan figured out before it is too late. Get your FREE consultation now!

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Important: This page is provided for general educational purposes only and is not legal or tax advice. FPP Financial and Dylan Foster are not a law firm and do not prepare legal documents. Estate-planning laws and individual circumstances vary. Consult a qualified estate-planning attorney and tax professional before making legal or tax decisions.