OVERVIEW
Estate planning, which includes legal documents like wills, trusts, and powers of attorney, is the process of preparing instructions on how to manage your assets both before and after your death. State and federal laws apply to estate planning, and so do taxes and possible probate costs. In order to protect your assets, it may be necessary to create legal entities such as revocable trusts, limited liability companies (LLCs) or family partnerships. The estate tax and other related issues are a hot political topic, and estate laws change often. It is vital to consult an experienced estate planning attorney, in order to protect your assets and meet the goals of your estate planning process.
Estate planning allows you to decide what will happen to your assets after your death. It allows you and your loved one to save time and legal costs, and avoid financial and administrative hassles. Your estate plan should include a will, financial durable power of attorney, health care power of attorney, HIPAA release and perhaps a trust and living will.
A financial durable power of attorney is a legal document that allows you to give directions to another person, who can then make legally binding decisions if you are unable to do so yourself.
A will is a legal document which provides instructions on how to deal with your property after your death.
In addition, other legal documents such as a health care Power of attorney, a living will, and a revocable (or "living") trust can help with decisions should you become incapacitated. A revocable trust can take control of your property before you die, allowing you and your family to avoid the cost, delay and invasion of privacy of probate proceedings.
The basic purpose of estate planning is not simply to distribute property after death, but to reduce inefficiency, taxes, court costs and attorney fees and perhaps eliminate the probate process completely. Many estates are free of federal taxes, and a spouse can leave a surviving spouse an unlimited amount of money free of taxes. Chek with us regarding current law for federal estate tax exemption amount rates. Also Iowa has an inheritance tax that could affect estates. Careful planning can often avoid or minimize these taxes.
Estate planning is vital to work towards security and peace of mind for yourself and your family. If you need help in any stage in the estate planning process, you should contact a lawyer experienced in estate planning to ensure your needs are met and your estate is protected.
If you would like to schedule a initial consultation contact an Iowa probate attorney, representing clients in Des Moines, Iowa at Howes & Anderson P.C. Give us a call at (515) 225-9000 or complete our inquiry form.
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While it may look simple, the drafting of a will and other estate planning is actually very complex. State laws regarding estate planning change often, and failure to comply can make any changes void. An attorney with experience in estate planning can help you to avoid making a costly mistake, and keep you up to date on changes in estate law. Remember: an improperly prepared will is invalid, and can create court battles and expenses that can eat away at the assets you spent a lifetime assembling. It is much better to safeguard your assets by consulting an attorney before beginning the writing of a will.
Your estate is the total of all property you own or control. Even if you do not own the property in your name, you can possess an ownership interest through a trust, partnership, or joint ownership. Any property or money which becomes available upon death, such as a life insurance payment, is also part of your estate. Typical portions of an estate include: Real estate and buildings. Personal property including cash, furniture, vehicles, stocks, art, etc. Life insurance and other financial instruments. Business interests or partnerships. Debts. Claims, including personal injury claims
This is the tax placed on an estate by the federal government. Check with us regarding current exemptions and rates.
A probate estate is the total of all assets that go through the probate process once a person dies. This generally includes all assets in the deceased person's name and those paid to the estate. It often does not include joint assets, insurance, assets held in trust, or similar assets.
Asset protection is legal when it is done legally. You cannot hide your assets or omit income when reporting your taxes. You cannot transfer assets in order to avoid debts. It is important to consult with an attorney when attempting to protect your assets, in order to avoid taking an illegal action.
If you become incapacitated, and a power of attorney has not designated someone to act on your behalf, a court procedure is necessary to assign a legal guardian to you and your estate. The preparation of a power of attorney can avoid the cost and time of a conservatorship process.
Under a living ( or a "revocable inter vivos") trust, a person transfers ownership of their assets to another entity while alive. The terms of the trust instruct the entity on how to manage the person's assets before and after death. This allows the person to avoid the probate process, and the possibility of a court-appointed conservatorship upon incapacity.
This is a legal entity which manages an estate or other assets for the benefit of other persons or entities, including corporations. There are many different kinds of trusts.
Wills remain valid forever, unless a new will is written. You can add a "codicil" to an existing will, to change or add something to it. Codicils must meet the same legal requirements for language as the original will. Generally, a will cannot legally be revised without the use of a codicil.
Your will is a legal document that details the organization of your estate upon your death. Wills are enforced in probate court. States have differing legal requirements for the language of wills.
DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
Howes & Anderson, P.C. is a Des Moines, Iowa Law Firm practicing in Iowa primarily in Estate Planning, Trust, Wills & Probate, and Family Law. Attorneys at Howes & Anderson, P.C. Law Office are dedicated to serving their clients in Iowa, including the cities of West Des Moines, and throughout the state of Iowa, including the communities of Polk County, Dallas County, Warren County, Clive, Waukee, Urbandale, Johnston, Windsor Heights, Ankeny, Norwalk, Grimes, Granger, Pleasant Hill, Altoona, Indianola, Carlisle, Adel, Des Moines, and surrounding communities.