Contrary to popular belief, estate planning is something everyone should do and isn’t just for the rich. Estate planning is immensely beneficial for everyone.
Engross in estate planning to safeguard your family’s future in cases of unfortunate events like your demise.
Here’s a detailed guide on estate planning. Read on to learn more about this process.
What is Estate Planning?
Estate planning is the process of making a legal arrangement comprising of documents that decide your assets’ fate after you pass away.
In simpler words, it’s determining beneficiaries for the estate and assets you own. Estate planning aims to ensure your assets go where they belong in case of your demise.
However, here’s one thing to be clear of – don’t assume your assets will go directly to your spouse and family. That’s one of the main reasons why estate planning is beneficial.
As soon as the word “Estate” pops up, people assume you need to have tons of properties. However, that’s not true!
You don’t need to own a mansion nor have millions of worth of property; “Estate” refers to any asset you possess.
What Documents Does Estate Planning Involve?
To ensure your estate plan is complete, you’ll need to include the following documents. These documents are as follows:
- Will
- Power of attorney
- A medical power of attorney
- Health directives
It’s essential to consult a will lawyer or an estate lawyer for each of the documents. Contesting a will, selecting the power of attorneys, etc., involves legalities that most people aren’t aware of.
However, an experiecned estate lawyer can guide you through the process.
What Is the Average Estate Planning expense?
The average expense of estate planning varies from person to person. It solely depends on your situation and needs.
However, a general estate planning expense would be paid to an estate lawyer or a law firm for legal guidance. Moreover, it will also include the cost of legal documentation drafts such as the will.
An Analysis of the Cumulative Cost
As mentioned earlier, the cost of estate planning is directly related to your needs and how complex your current situation is.
Various factors come into play when calculating the cost of estate planning, but it all comes down to one aspect; an estate lawyer and documentation costs.
According to sources, a simple Will for an individual starts at about $400, a complex Will is $800-$1,100, a Financial Power of Attorney is $150-$200, and a Living Will is priced at $100-$200.
The overall estate planning cost may be calculated through a consultation fee, an hourly rate, or a flat fee.
Consultation Fee
It’s essential to consult an estate lawyer or get in touch with a law firm when estate planning for the future. Furthermore, a will lawyer will also be required to draft the will and other documents.
Certain lawyers charge for consultation just to brief you about the estate planning process. That’s where you can curtail your estate planning costs.
Many estate lawyers and law firms offer a free consultation that walks clients through the entire estate planning process.
Look for a law firm that provides free consultation and saves your money. Saving on the consultation can reduce your estate planning costs by quite a number.
However, some lawyers may ask you to pay a consultation fee to take you through the planning process.
After getting a free brief consultation on estate planning, swing to a paid consultation. Estate planning can get tough and confusing due to its legalities and modules.
Hourly Charges
Most estate lawyers or law firms charge by the hour for estate planning services. However, that also depends on the agreement.
Every law firm has different rates based on different situations.
What you can do to minimize your cost is to hire a qualified estate lawyer who’s quick and efficient. By doing so, you’ll be able to wrap up the planning in a couple of hours. Quick and efficient work can drastically reduce your hourly costs.
Flat Charges
Certain law firms give a total estimate of the cost, which covers the planning and consultation charges. An overall quote is provided to you and should be paid at the end of the estate planning process.
Factors That Affect The Cost Of Estate Planning
Certain factors contribute to higher costs of estate planning. In some cases, these factors could complicate situations and also cause estate lawyers to increase their rates.
Some of these factors are:
Children
More children mean your estates and assets will be divided amongst more beneficiaries. For these distributions, trust documents are a requirement. These costs are independent of planning costs.
As a result, there’s an increase in estate planning costs.
Property Value
The greater your estate’s value, the tougher the planning gets. If your estate is of a higher value, your successors will have to pay taxes after your demise.
Estate lawyers can ensure that this doesn’t happen.
Distributed Properties
If you have properties in different provinces, estate planning can get tricky and tedious for the lawyer because of different laws.
Hire a Qualified Estate Lawyer
To ensure smooth and efficient estate planning, hiring a reliable and qualified estate lawyer is essential. Protect your estate and assets by hiring a competent estate lawyer.
About the Author
Kendra Simons is an inactive estate planning attorney who provides insightful tips to guide readers about the estate planning process.
