Q: What is estate planning?
A: Estate planning is the process by which you determine how your personal assets and property will be managed following your death in such a way as to reduce taxes and settlement costs. Your estate includes everything from real estate, checking accounts, savings accounts, retirement plans, businesses, investments, life insurance, and so forth.
Q: Why should I establish an estate plan?
A: Many people believe that they do not need an estate plan if, in their view, they don’t have a lot of assets. People from otherwise average households assume their assets will be divided between their loved ones. The truth is much more complicated. Without legal arrangements, your assets will most likely fall into the state’s intestacy laws, meaning for Missourians, that Missouri law will determine who inherits what. This process, called probate, is a public court-supervised proceeding that can tie up your assets for a long time. This can place a lot of stress and financial hardship on your family.
Q: What is involved in an estate plan?
A: Your particular estate plan will depend on your personal circumstances, including the nature and value of your assets, properties, accounts, and so forth. You will also likely wish to minimize estate taxes as much as possible. You will provide answers to crucial questions, including who will oversee your estate in the event you become incapacitated and who will receive your assets upon your death.
Q: What constitutes an, “estate”?
A: An estate is, in essence, everything. Your home and any additional property, your business interests, belongings, financial assets, bank accounts, insurance accounts, investment accounts, and so forth.
Q: Is a will all I need?
A: Not if you want your estate to be administered outside of probate. While a will provides instructions to the probate court of the administration of your estate, it must be, “probated” or a administered by the Probate Court.
