Why Estate Planning Matters Even For Simple Estates

If you are like many of us, it can be difficult thinking about estate planning and end-of-life needs. It is easier to assume there will be time to handle those things later. Perhaps you are also working under the assumption your planning needs are so straightforward they do not even require a will or trust since everything is just going to your spouse or your children.

I hate to be the bearer of bad news, but that is not the case. I recently had a call with a potential client who was in her 70s. Her husband had passed about five months prior to our call and he had died with a very simple will stating 100% of his assets would go to his wife. They had no creditors, no one was challenging the will, and yet five months later, this woman was still dealing with the probate court and had already spent $7,000 in fees related to resolving the probate estate.

If there is any clearer example of why estate planning is important, I am not aware of it. If this married couple had established a revocable living trust prior to death, all of his assets would have immediately passed to his wife without the need for court involvement. It would have been done as soon as the death certificate was printed and she could show he passed and she was the rightful trustee.

The cost of forming a trust might seem like a lot in the moment, but in almost all situations (other than very small estates, under $100,000 in Washington), they pay for themselves through the avoidance of probate fees and costs. The process is nearly identical to making a will with the only additional step being "funding the trust" by quitclaiming your home into the name of the trust and moving your financial accounts into the name of the trust.

For revocable living trusts, you maintain full control over your assets for the rest of your lifetime, then upon death, the trust becomes irrevocable and will be distributed in accordance with the trust documents which would typically mirror your will in terms of dividing assets between beneficiaries.

If you are looking for assistance with your estate planning needs in the greater Vancouver, WA or Portland, OR metro area, reach out today: 360-450-2372 or mat.c@heritagelegaladvisors.com.

Reach out for your estate planning needs in Vancouver, WA or Portland, OR: 360-450-2372