Planning for your future is important, but navigating the complexities of estate planning can feel daunting. At The Nice Law Firm, our Indiana Estate Planning Lawyers prioritize communication and care for our clients. With this comprehensive guide to Indianapolis estate planning law, we will delve into the intricacies of estate planning and empower you to make informed decisions about your future.
Regardless of your age or wealth, estate planning is an important task to make sure your choices regarding your health, finances, and other care options are honored if you are not able to communicate them yourself. Schedule a free case consultation with one of our Indianapolis estate planning lawyers to discuss your situation and choices for your future.
What is an Estate Plan?
Estate planning is the process of planning for the future of your assets and care after death or if you are incapacitated. The goal of an estate plan is to maximize the amount of wealth that is being passed down to beneficiaries and to ensure your choices are valued before death. Estate plans can include a variety of legal documents, depending on preferences and applicability. They can include:
- Wills – a legal document regarding care and assets that becomes active after death
- Trusts – a legal agreement that passes assets to a beneficiary before death
- Advance Healthcare Directives or Living Wills – a legal document providing instructions for end-of-life care if the person is incapacitated and unable to speak for themselves
- Powers of Attorney – the legal authorization to act on behalf of an individual during life or after death regarding their assets, finances, or medical care
An estate plan ensures that your choices are honored with how you want to distribute your assets including property, possessions, and money. It allows you to designate guardians over minor children as well as authorizing a trusted individual to manage your care and finances should you become unable to. Having an estate plan in place allows you to avoid probate court, where the government will decide how to split up your assets and avoid lengthy delays, fees, and estate taxes. If you wish to learn more about estate planning and the steps you need to take to prepare for your future, contact one of our estate planning attorneys to start the conversation.
Who Needs an Estate Plan?
It is a common myth that estate plans are only for the rich and the elderly. Any adult can benefit from having an estate plan set up to save you and your loved ones time and money and the headache that comes with not being prepared. Whether you are a young professional just starting your career or someone who has gotten concerning medical news, estate plans help provide you and your loved ones peace that your assets, healthcare choices, and legacy are cared for no matter what the future holds.
No matter what your financial situation is, you need an estate plan if you have complicated assets like property in multiple states, own a business, or have items of significant value that need to be distributed in a certain manner and do not want them to be determined by probate courts. You also should have an estate plan if you have minor children who will need a guardian designated to look after them if you are no longer around or wish to have a healthcare directive to allow you to specify your wishes for end-of-life care.
Ultimately, estate planning brings peace of mind to you and your loved ones. By prioritizing and taking the time now to create an estate plan, you can ensure that your future is protected and that your loved ones will be provided for the best you can, regardless of your age or wealth. Life is unpredictable, so do not delay getting started. Contact an estate administration attorney to get started today.
How Does an Estate Plan Help Me?
An estate plan works to guide your loved ones through your predetermined choices for asset management, healthcare needs, and other important matters like planning care for minor children. This allows you to create a plan for the future where you may not be able to speak for yourself and your choices as well as helps to minimize delays in probate as well as fees and taxes that take away from your financial legacy. An estate plan gives peace of mind that your desires will be known and respected.
Manage Your Assets
Take control of your asset distribution with an estate plan that empowers you to make informed decisions about how your collective assets, including possessions, finances, and property, will be distributed after your passing. Having this proactive approach set up prevents confusion regarding your wishes as well as potential conflict among loved ones during a difficult and highly emotional time. Your estate plan will allow you to clearly designate beneficiaries for specific assets, specify percentages of your estate for distribution, or even establish trusts to manage assets before your death. It is important to note that certain assets, like pension plans, 401(k) accounts, and savings accounts with predetermined beneficiaries, follow a separate asset management path, as those accounts typically require you to set up beneficiaries when you open those types of accounts.
A traditional method of estate management of your assets is the will. Wills are legal documents that outline your wishes for asset distribution after your death. For a will to be legally valid, it requires a few specific details like being written down, signed by witnesses, and undergoing probate for distribution. Probate is a court-supervised process that oversees the distribution of your assets based on the terms of your will. The will is only effective after your death and cannot include any details regarding end-of-life care, advanced care directives, or power of attorney while you are still alive.
Trusts are a common alternative method to traditional wills that allow you to transfer ownership over assets to a trustee who manages them according to your predefined instructions. One key benefit of a trust is that it will allow your specified assets to avoid probate, which can expedite the distribution of your assets to beneficiaries. Living trusts only manage assets you transfer during the time you are alive and cannot encompass any future assets or critical details like guardianship over minor children after your passing. For this reason, many people choose to have both a will and a living trust for a comprehensive estate plan.
Plan for Incapacity
Life can be unpredictable, and planning for the possibility of your incapacity can provide a comfort that you know your choices will be honored should anything happen. If a sudden accident or illness leaves you incapacitated, whether unable to speak for yourself or in an unresponsive state, your loved ones and medical professionals can reference your predetermined choices to help them know how to proceed.
Two types of authorities are important to consider in estate planning. A Power of Attorney is an authority granted to a chosen individual to act on your behalf in certain capacities, such as financial affairs and business matters, should you become incapacitated. This ensures that your financial obligations will continue to be met, bills are paid, and important decisions are being made according to your wishes to care for your estate and your family. A healthcare proxy, known in Indiana as a Power of Attorney for Health Care Decisions, functions similarly but specifically for medical choices. By appointing a healthcare proxy, you empower someone you trust to make medical decisions on your behalf if you are unable to do so. This can be combined with an Advanced Healthcare Directive or be completely left up to the trusted proxy to consent to treatments, medications, and care.
An Advance Directive allows you to provide specific instructions regarding your medical care, including outlining your wishes for end-of-life care, specific treatments you do or do not consent to receive, and pain management preferences. This legal document supplements your healthcare proxy by providing a roadmap for your medical care in accordance with your values and beliefs. By implementing these incapacity resources, you and your loved ones will have peace of mind knowing that your choices will be honored even if you are not there to advocate for yourself. Speak with your Indiana estate planner to learn more about what you should put in an advance healthcare directive.
Plan for Your Children
If you have minor children, it is important to designate a trusted guardian to care for them should you no longer be around to do so. Even if you have a spouse, partner, or combined guardianship, it is important to establish this additional individual or individuals just to completely provide coverage if something happens to both of you. If you do not designate a guardian for your children and they are still minors at the age of your passing, you risk having the Indiana Courts decide who gets guardianship over them.
In addition to providing for their specific care, you can also designate benefits for them in the future, such as trusts that will allow your children access to funds when they reach certain ages or life milestones. An example of this would be when your child is ready to go to college. They could receive the money you set aside in a college fund for them. Being able to set aside money for your children ensures the most protection you can provide, that the money will be used responsibly for education, housing, medical care, or other needs.
What Happens if I Do Not Have an Estate Plan?
If you die without a valid estate plan in Indiana, it is called dying intestate, and it relinquishes control over how your assets are distributed, potentially causing significant complications, time, and money for your loved ones. During probate in Indiana courts, your estate will be divided up and parceled out in percentages to surviving relatives, including spouses, children, parents, and aunts and uncles. Intestate inheritance rights for adopted children, children born outside of marriage, and stepchildren can potentially have difficulties with inheritance rights if there is no will that specifically designates them.
Seeking legal guidance from an estate administration lawyer can help remove the burden of settling intestacy succession, but avoiding intestacy altogether is ideal. Probate and intestacy succession can be complicated by delays such as:
- Beneficiaries and family members debating inheritance rights
- Creditor claims regarding outstanding debts against the estate
- Disputing the appointed executor or administrator of the estate
- Taxes and penalties in probate courts
Revisiting Your Estate Plan
What feels right for you now may not always reflect your needs and desires in the future. Whether you have had some life events that signal it’s time to review your estate plan or just feel like it is time to review, contact one of our Indiana estate planners to help. Some of these life changes could include things like:
- Marriage
- Divorce
- Birth of a child
- Adoption of a child
- Serious change in health
- Acquiring a significant asset or property
Even if you have not had any significant life changes, it is recommended that you review your estate plan on a consistent basis, as your wishes may have changed. Speak with someone from our team to get started on your estate plan or make updates to the current plan you have in place.
Use Estate Planning Services from The Nice Law Firm to Prepare for Your Future
Schedule a free consultation with The Nice Law Firm to discuss your needs regarding your future. One of our trusted estate administration attorneys will be by your side through the whole process to empower you to make the best decisions regarding managing your assets, financial and business decisions, and healthcare choices. It is important that your plan is personalized to meet your and your family’s needs and bring you peace of mind for the future. We understand that every situation is unique and will work with you to customize a plan for your specific requirements.
Do not put off making your estate plan until it is too late. Trust our Indiana estate planning lawyers to treat you like family and ensure that you have a comprehensive plan prepared. When you are ready to prepare for your future, contact us online to request a consultation.