Essential Estate Planning Questions to Consider

Estate planning is the process of documenting your wishes to ensure they will be carried out when you pass away — or in the event you become incapacitated. It allows you to have control over how your property gets distributed and who makes decisions on your behalf. However, there is a lot of thought and consideration that must go into creating a comprehensive estate plan. Here are several crucial estate planning questions to think about that can help to guide your discussion with your attorney.

Who Will Make Decisions on My Behalf if I am Unable?

One of the most important estate planning questions that arise is who will make personal and financial decisions on your behalf if you cannot? Although no one wants to think about becoming incapacitated or being diagnosed with an illness such as Alzheimer’s or dementia, it’s essential to have a plan in place to ensure you have peace of mind. The following documents can be used for incapacity planning:

• A health care directive. Minnesota law combines a living will, which can specify the medical treatments you would like to receive (or not receive) if you cannot make your own decisions, and a healthcare proxy, which allows you to designate someone else to make healthcare decisions on your behalf if you are unable to do so.
• A financial power of attorney — This names a person who will manage your financial matters, including receiving income, writing checks, filing your taxes, handling your accounts, and more.

It’s critical to choose the people who will serve in these roles carefully. You should select individuals who you trust to act in your best interests. For the role of financial power of attorney, be sure to choose someone who is responsible and is comfortable handling financial transactions.

What is the Best Way to Leave Instructions About Who Gets What?

There are several different ways you can leave instructions about who gets your property when you pass away, whether it’s funds in bank accounts, real estate, or personal items. Although your last will and testament serves as a general outline for your wishes, it doesn’t have to transfer all assets. For example, you can designate beneficiaries on life insurance policies and retirement accounts, as well as pass any jointly owned property to the surviving owner. You may also consider leaving a trust if you wish to avoid probate and transfer your assets privately.

Do I Need a Trust if I Write a Will?

A common estate planning question is whether a trust is necessary if there is a will. The answer depends upon your specific objectives. Each tool serves a different purpose — you can use both or just one, depending on your family and financial circumstances. A will is the foundation of every estate plan, and it’s important to be aware that a will can also designate a guardian for minors, which a trust cannot do. by leaving property in a trust, you can avoid probate and have control over when the funds are distributed.

How Do I Choose My Beneficiaries?

Your beneficiaries are those who will receive your property in accordance with the instructions provided in your will. You can name family members, friends, pets, or even a charity. When choosing beneficiaries for your will, you may consider various factors such as:

• Who needs additional financial assistance
• Your relationship with the beneficiary
• Whether you wish to provide for a charitable cause in which you believe
• Whether a particular item has sentimental value to a specific beneficiary

You should also name contingent beneficiaries for each piece of property in case a primary beneficiary predeceases you or disclaims their inheritance.

Who Should I Name as My Executor?

Your executor, now referred to as the personal representative, is the individual named in your will who is responsible for handling all the tasks involved with settling your estate. They will have to begin the probate process, identify assets and liabilities, obtain valuations, keep detailed accountings, distribute your assets, and report to the court. When choosing someone to serve in this role, it’s vital to consider not only the individual’s trustworthiness and financial experience, but also whether they will have the time to deal with all the paperwork associated with administering an estate. You should also name someone who understands your values and can navigate emotions between surviving family members.

What Happens if I Don’t Have an Estate Plan?

If you pass away without an estate plan, you will be considered to have died “intestate.” This means that the state would distribute your assets in accordance with the law, which could result in consequences you had not intended. Additionally, if you don’t have an estate plan and you become incapacitated, there would be no one to make decisions on your behalf. In such cases, the court would need to appoint a guardian and/or conservator — a time-consuming process, and the result may be someone who you did not want to serve in that role.

Contact an Experienced Minnesota Estate Planning Attorney

If you are thinking about planning ahead, a knowledgeable attorney can answer your estate planning questions and best advise you based on your specific circumstances. At Mundahl Law, our estate planning attorneys work closely with clients throughout Minnesota for their estate planning matters, providing personalized attention every step of the way. To learn more about how we can assist you, or to schedule an appointment, contact Mundahl Law at 763-575-7930 or click schedule a consultation to speak with our Client Advocate.