Legal & Estate Planning
Estate Planning In Northern Virginia | AOG Wealth
AOG Wealth Management provides estate planning services for clients looking to plan ahead for the unexpected. Learn more today!
What is Estate Planning?
It is never too early to start estate planning, even if it feels a little morbid. Although we cannot control our time here, planning ahead may reduce some of the burden our loved ones could face in settling our estates once we pass. Even if you are just beginning to work and save, there are steps you can take to keep your estate in order. First, make sure that your IRAs and 401ks designate your desired beneficiaries. You can also designate Transfer-on-Death beneficiaries on your non-IRA investment accounts as well as your checking and savings accounts. Check this information periodically and make changes as soon as possible when necessary.
If you have young children, talk with your attorney about establishing an Appointment of Guardian. This document allows you to appoint an individual of your choice to care for and make decisions on behalf of your minor children should something happen to you. You should also consult with your attorney about obtaining a Medical Power of Attorney and General Power of Attorney so that someone of your choice can step in to help with your affairs should you become unable to manage them yourself.
To avoid the costly, time-consuming, and arduous process of probate, you may choose to establish a Revocable Trust. Once you have executed those documents, it is important to revisit them as well as the registration of your assets periodically. One common mistake people make when establishing a Revocable Trust is never fully funding it. Assets that are not properly titled in the name of your Trust may still be subject to probate. Your attorney can give you specific advice about titling real estate and other tangible property.
At AOG, our holistic approach to financial planning considers all aspects of life that touch an individual’s finances. Although we do not provide legal advice, we work closely with attorneys to assist clients in organizing their assets with the future in mind.
Why Is Estate Planning Important?
Many clients ask why Estate Planning is important. The bottomline is that it provides financial protection to your heirs. We will go into further details about how it provides this protection and the five ways it is utilized.
Beneficiaries can sometimes misplace grief in material things such as sums of money or objects. The gifts given through the Trust should bring the family together, not tear them apart. Protect your heirs from disagreements and emotional turmoil over the estate by establishing detailed instructions.
An estate can protect young children if clients die early or unexpectedly. The most important task is to name a guardian for minor child(ren). If you’re a parent of a minor child, an estate plan will ensure your child(ren) is cared for. This will allow you to designate a guardian who will parent your child until they turn the age of 18. Without a plan, the courts have the power to step in and make decisions that you may not agree with.
An estate also helps avoid taxes for beneficiaries by allowing you to avoid probate. This benefit prepares future generations to receive wealth at an early age. Through education and preparation, we help the rising generation to receive their inheritance and invest to preserve your family’s wealth long term. Developing an estate plan is a good opportunity to establish wealth planning goals, cultivate conversations and what that means to your family, educate children about financial objectives and ways they can become involved in creating and sustaining legacy wealth.
The detailed outline of an estate plan helps avoid family drama and messes post-death. Remember that you can make End-of-Life plans outside of your Will that specify your wishes for your burial, memorial services, etc., as they will come quickly after your passing but generally before a Will is read or acted upon. The grieving process puts your loved ones in a vulnerable state. The more you decide now, the less your mourning loved ones must decide on your behalf during a state of grieving.
Finally, an estate plan helps protect you as well (through power of attorney, etc). Each critical document has been created to be thorough. Thinking about using online tools for creating Wills or other legal documents? Keep in mind that improperly prepared documents can be rejected in court. Legal documents must adhere to a specific language, which can vary by state.
What is the Role of Executor In Estate Planning?
Overseeing the execution of the estate plan is just as important as the plan itself. The individual overseeing the plan is called an executor? This person assists with choosing how you dispose of your wealth: A will is the most basic document which names an executor or personal representative. They become responsible for the administration of your estate after you die and distribute the property as you direct. A revocable trust is helpful to supplement your will.
What are their roles and responsibilities as executors? Determine who will make decisions on your behalf if you’re unable to do so yourself. If you become incapacitated, a living or revocable trust will hold assets for your benefit, while you’re alive, and name the people you wish to receive your property when you die. Naming a durable power of attorney to act on your behalf on financial and legal matters if you become physically or mentally disabled can help ensure that these decisions are made in your best interest. If you’re unable to make medical decisions for yourself, having a healthcare proxy, agent or power of attorney, HIPAA release, and living will can help make sure that you receive the care you need and desire.
When we have this discussion with our clients the next question asked is how do they choose an executor? It is completely your decision who should act as the executor of your estate. When considering someone, make sure you nominate people you can trust to implement your wishes. This individual should be impartial, unbiased, and sympathetic to the process. Someone with integrity, compassion, and understanding. It may take you a day or a few weeks but never rush your decision.
Contact our Estate Planning Firm in Reston, VA
For more information on Estate Planning, contact us to speak with an AOG financial advisor.
DISCLAIMER:
AOG Wealth Management is a Registered Investment Adviser (RIA). Registration as an adviser does not connote a specific level of skill or training. More detail, including form ADV Part 2A filed with the SEC, can be found at AOGWealth.com. Nothing contained in this commentary is intended to constitute personalized legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The asset classes and/or investment strategies described may not be suitable for all investors and investors should consult with an investment advisor to determine the appropriate investment strategy. Information obtained from third party sources are believed to be reliable but not guaranteed. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. No consideration or compensation has been received from any firm referenced in the above commentary.