Thinking about what will happen to your belongings, finances, and family after you pass away can be uncomfortable, and many people tend to put off these discussions, especially when they are young and healthy, or because they don’t want to think about making these decisions.
Estate planning isn’t just for retirees or the elderly. It’s critical at every stage of your life to establish provisions that provide for your family and make sure your property is transferred or divided according to your wishes.
At SB Law, our attorneys are dedicated to helping you draft effective estate plans based on your current situation and update existing plans as your life circumstances change. With offices in Sheboygan and Manitowoc, Wisconsin, we serve clients throughout the Wisconsin Lakeshore. Contact us today to schedule a consultation and take the first steps toward setting up a comprehensive estate plan.
The Importance of Setting Up an Estate Plan
Estate planning is essential for individuals at every stage of life. Whether you are a young professional starting your first job, a newlywed, a new parent, a retiree, or in a nursing home, an estate plan serves as an objective set of documents that dictate:
Who will receive your assets and property after you pass away?
Who will care for your minor children or dependents?
Who will have the authority to make medical or financial decisions on your behalf when you are unable to do so yourself?
Unfortunately, emergencies and critical conditions can happen at any point in your life. Therefore, it’s important to have an estate plan in place to provide clear direction for how your estate should be handled if you are incapacitated or pass away.
If you become incapacitated or pass away without an estate plan, your estate will be considered intestate. This means that the courts will determine who receives your property and how your estate will be divided under the state’s intestacy laws. Intestate succession follows a strict hierarchy for who inherits your estate, which may not match your wishes or intentions.
What to Include in a Basic Estate Plan
You don’t need to have significant wealth to set up an estate plan. The goal is to provide for your family and loved ones after you pass away, whether that includes minimal property or significant real estate and accounts. When setting up an estate plan, the primary documents you should include are as follows:
Last Will and Testament: A Last Will and Testament is the foundation of any estate plan. In your will, outline who will inherit your assets, specify asset distribution, name beneficiaries, appoint an executor to oversee distribution, and name guardians for your minor children.
Durable financial power of attorney: A financial power of attorney designates a specific individual to manage your finances if you are incapacitated or unable to do so yourself. Without one, the court will often appoint a guardian, which may not match your interests. Making your financial POA “durable” means the document remains active even if you lose the ability to make decisions.
Healthcare power of attorney: A healthcare power of attorney gives someone you trust the authority to make medical treatment decisions if you become incapacitated or medically unconscious. When naming a healthcare POA, choose someone you trust who will make decisions in your best interests and that align with your beliefs and preferences.
Advance directive: An advance directive outlines your wishes for end-of-life care, such as your preferences for life support and do not resuscitate (DNR)/do not intubate (DNI) orders. Without an advance directive, your family members will often need to decide what to do, which may not reflect your wishes.
Setting up these documents gives your family and beneficiaries the direction they need to make informed decisions about administering your estate when you become incapacitated or pass away. For assistance with drafting the right documents, contact our experienced Wisconsin estate planning attorneys.
When Should You Update Your Estate Plan?
Setting up an estate plan is not a one-and-done task. You should update it regularly, especially whenever you experience a significant change in circumstances. The primary times you will need to update your estate plan include the following:
Regular reviews: Generally, you should review your estate plan every three to five years to make sure it still reflects your estate and your wishes for how it should be distributed. Doing so can also help you catch and address minor issues while they are easy to fix.
Significant life events: Update your estate plan if you have experienced any major event or milestone. This could include getting married, getting divorced, having or adopting a child, your spouse passing away, moving states, or the death of someone you named as an executor, agent, guardian, or trustee.
Considerable financial changes: Update your estate plan whenever you experience a major change in your finances. This could include making considerable real estate purchases, opening a business, or reaching retirement milestones.
Updating your estate plan is essential to make sure it reflects your current wishes. At SB Law, our attorneys can help you review your plan regularly and update it as needed. Contact us today for further guidance.
Contact Our Experienced Wisconsin Estate Planning Attorneys
Establishing a basic estate plan provides a safety net to make sure your estate is administered and distributed according to your wishes. Whether you are setting up an estate plan for the first time or need help updating an existing plan, our attorneys at SB Law are dedicated to helping you draft and revise documents that accurately reflect your wishes and goals.
With offices in Sheboygan and Manitowoc, Wisconsin, we serve clients throughout the Wisconsin Lakeshore. Contact us today to schedule a consultation and explore how we can help you set up an effective basic estate plan.
