Your will is the cornerstone of your estate planning. Without it, your entire estate can become an afterthought to the courts.
Because you must follow the law with this planning, your will is often created first. It can also serve as a template for powers-of-attorney and any other required documents.
What comes after this is a discussion of proper estate planning. Your will is the start, with vetting by attorneys and perhaps drafting a living will or healthcare directive being the next level.
But what about the other half of estate planning? How much should you pay for your estate plan?
The answer is different for everyone, but it depends on how extensive your estate planning needs are. Keep reading to learn more about estate planning can prepare you for the future.
What Is Estate Planning?
Estate planning is the process of anticipating and arranging someone’s affairs during their life if that person becomes incapacitated after death. These plans may eliminate the guessing and maximize the value of an estate by reducing the taxes and other expenses assigned to the estate after someone’s death.
The goal of an estate plan can vary. Estate plans exist to grant the wishes and meet the needs of the property owner. Estate planning includes:
- Advanced Healthcare Directive
- Power of Attorney
With an estate plan, you will have control over who will inherit your assets rather than the government. Instead of letting the state’s default laws pick your heirs, estate planning enables you to choose who will get your assets upon your passing.
Why Can Estate Planning Can Be Worth The Investment
Most individuals who have property or a family should create an estate plan. Depending on the size of your estate and other variables, you might or might not need an estate plan.
Estate plans are helpful if you want your partner to manage your finances and make medical decisions for you if you become incapacitated and you want to leave your assets to them. You must have an estate plan to guarantee that your assets will pass to your partner upon your death and to formally designate your partner as your agent in your financial and medical power of attorney.
Be Proactive to Find an Estate Planner
You need to be prepared for the inevitability of mortality. That is why you need to be proactive about connecting with an estate planner and securing your assets for the future.
By discussing costs upfront, you can have an open conversation about fees and consultation costs. You need to attend your first educational meeting to talk about different aspects of an estate plan.
Once you choose an attorney, you need to put your deal in writing. By starting with a comprehensive contract, you will be able to keep the firm accountable as you entrust them with your finances and assets. It is necessary to research different firms to select the correct firm to manage your estate.
How Much Does Estate Planning Cost?
The cost of estate planning can greatly vary. When budgeting for your estate planning it’s critical to understand who will be working on your estate plan and what kind of plan you require. Estate planning fees are usually broken out into hourly rates, flat fees, or contingency fees.
Your lawyer will probably charge you an hourly rate if they are unable to determine a fixed price. Any time spent making your estate plan will be charged at an hourly rate.
If your lawyer charges by the hour, they may also need a retainer upfront. This retainer pays for onboarding costs and contributes to your bottom line. If your estate planner will take more time or work, they may opt for an hourly fee.
Your lawyer may charge a flat fee to cover the cost of their estate planning services and experience. Usually, this fee includes the creation of a will or a power of attorney.
If your attorney requests a fixed fee, you need to inquire what is covered in that arrangement. Your fixed fees may need to be paid in full before the attorney starts working.
In circumstances where you will get financial compensation, a contingency fee is used. For instance, you pay your lawyer a percentage when you obtain once a lawsuit is finalized.
Because payment would be circumstantial, lawyers rarely offer contingency fees as an option for estate plans. A probate lawyer could charge you this fee if they are going to settle an estate.
Before you invest in an estate plan, you need to inquire about different fees. These fees are variables that can impact the overall cost of your estate plan. You need to be proactive in scheduling an upfront consultation.
Use A Qualified Estate Planning Professional
An estate plan’s ability to reduce the costs, delays, and invasion of privacy associated with the probate procedure is one of its primary benefits. Estates allow you to provide for your family even after you pass. Many people find great comfort in the ability to care for their loved ones. This makes it essential to minimize the expenses and taxes and to ease the burden of loss on your family.
Interested in finalizing an estate plan for you and your family? Contact our team at the Rhodes Law Firm to get started on estate planning and securing your financial future.