Estate planning involves a variety of tasks that include developing an appropriate estate planning strategy, artful drafting of estate planning documents and undertaking appropriate steps to implement an estate plan and to facilitate administration of one’s estate.
Although many people recognize the need to prepare documents that comply with the legal requirements associated with an estate planning device, the planning and implementation stages often go neglected without guidance from an estate planning law firm.
There are many people who assume the primary focus of estate planning is to ensure that the wealth acquired by an individual during one’s lifetime is distributed to one’s family, friends and/or charities consistent with one’s wishes. While the succession of one’s legacy is certainly an important part of estate planning, the single minded focus on this objective can prevent one from developing a comprehensive estate plan that addresses other important issues, such as:
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Incapacity planning
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Medicaid planning in the event or residency in a skilled nursing facility
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Protection of assets from the creditors of the person creating an estate plan and his/her loved ones
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Strategies to reduce income, estate and gift tax burdens
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Avoiding the inefficiency and costs associated with probate court for a guardianship, conservatorship or estate administration proceeding
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Creating effective retirement cash flow strategies
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Designating guardians for one’s children in the event of the incapacity of parents
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Ensuring medical professionals respect your wishes about extraordinary end-of-life medical decisions
These other functions of an estate plan are extremely important so most people would not choose to ignore or neglect these issues if they knew that they were fundamental considerations in any estate plan.
Even if an estate plan is skillfully constructed and the documents are drafted effectively, there are steps in the effective implementation of an estate plan that can easily be overlooked. Many estate plans include a trust to avoid the need for probate, and the trust must be properly “funded.” Funding a trust essentially means re-titling the assets in the name of the trust. As you acquire new assets like real property, securities, retirement accounts, bank accounts and cash, you should consistently update the trust so that your new assets are included in the trust. It is also important to provide an inventory of your assets as well as account numbers and the location of all assets to assist whoever administers your estate in efficiently handling the management and/or distribution of your assets.
Does Your New Mexico Estate Plan Cover Digital Assets?
The above information is provided to illustrate general principles of law and should not be interpreted as a specific legal opinion on an individual case. You should contact experienced legal counsel to get specific legal advice that is based upon your specific circumstances.
Our New Mexico Estate Planning Attorneys represent clients in all phases of comprehensive estate planning and fully engaged estate administration. If you have estate planning questions or concerns, the experienced New Mexico Estate Planning Lawyers at Jay Goodman & Associates, PC offer a free consultation in our centrally located offices in Santa Fe and Albuquerque so that we can discuss your options. Call us today to schedule your free consultation at (505) 989-8117 to learn about your rights and options.
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