What Makes up a Thoughtfully Comprehensive Estate Plan in Tennessee?
Planning for your family’s future is one of the most important steps you can take to protect your loved ones. A thoughtfully crafted estate plan is more than just a will or trust, it’s a personalized blueprint that addresses your unique needs and goals while adhering to Tennessee laws and allowing you to pass on your values to future generations. This article will break down the essential components of a comprehensive estate plan so you can feel confident about your family’s future.
A Will or a Trust: The Foundation of a Solid Estate Plan
The foundation of any comprehensive estate plan in Tennessee is a will or a trust. These legal tools allow you to get your wishes down in writing and to choose where you want to leave your money and property when you die. They can also allow you to pass on your values to the generations you leave behind.
- Wills: A will is straightforward and effective for designating who inherits your assets and who will serve as the legal guardian for minor children. While simple, there is a catch: your family and/or kids will have to go through the probate court process before they can inherit your assets. This probate court process can be expensive, time consuming, and uncomfortably public, so most people wish to avoid it completely. You can learn more about probate by clicking HERE.
- Trusts: A primary advantage of using a trust over a will is that trusts avoid probate. This means that your family and/or kids will inherit your assets without any court involvement meaning that it is cheaper, faster, and easier for them after you die. In certain situations, they can also help to minimize estate taxes and protect your assets from creditors and lawsuits.
Click here to learn more about Wills vs. Trusts.
Whether you ultimately choose a will or trust based estate plan, that foundational piece is just the beginning of a comprehensive plan.
A Children’s Trust Protects Your Kids
A children’s trust is a separate trust that hold’s your children’s inheritance for them and has more than one strategic use.
If you have young children, a children’s trust is a must-have. It ensures that your children’s inheritance is managed responsibly by someone you trust until they’re mature enough to handle it themselves.
If you have grown children, a children’s trust can be just as powerful. Giving your adult kids an inheritance check with no strings attached can be a pretty scary thing. They may be very responsible and use their inheritance wisely . . . or they may blow most of it on a wild weekend in Vegas then decide they need a sports car. A children’s trust is the opposite. It gives your kids access to their inheritance for things that you approve of, like health and education, but restricts access to things that you may not approve of, like gambling.
As an additional benefit, whatever has not been spent from your kids’ children’s trust cannot be taken from them. They cannot lose their inheritance to a divorcing spouse, creditors, or by being sued.
Including a children’s trust in your estate plan can truly offer peace of mind knowing your kids’ financial future is secure no matter what.
Disability Planning
When people think about estate plan, they typically think about planning for their death. But what happens if you become disabled and are unable to manage your own affairs? The truth is that you are 7 times more likely to become disabled in any given year than to die. If you do not have a legal plan in place to address this, then it can create an extremely stressful and expensive situation for your family. Fortunately, we can prevent any nightmare scenarios with a comprehensive estate plan that includes a Durable Power of Attorney and an Advance Directive for Health Care.
- A Durable Power of Attorney: A durable power of attorney allows you to choose someone you trust to make financial and legal decisions and handle those matters if you become disabled and unable to manage them yourself. Without a Power of Attorney, your family might face lengthy court proceedings to gain the authority to manage your affairs. This is sometimes referred to as “living probate.”
In Tennessee, a durable power of attorney ensures seamless management of your finances, such as paying bills, managing investments, or even running a business, during times when you’re unable to do so yourself.
- An Advance Directive for Health Care: An advance directive for health care in Tennessee is like a healthcare power of attorney and living will combined. Like a power of attorney for financial matters, an advance directive allows you to choose someone you trust to make medical decisions for you if you become disable and unable to communicate those wishes yourself. Additionally, an advance directive allows you to put your own medical wishes in writing if you cannot communicate them. It ensures your wishes regarding life support, resuscitation, and other critical decisions are honored.
Both parts of the advance directive for health care combine to provide a complete framework for addressing health care scenarios if you become disabled.
Ongoing Support from a Dedicated Estate Planning Attorney
Estate planning isn’t a one-and-done process. Life events such as marriage, the birth of a child, or acquiring new real estate may require updates to your plan. Having a dedicated estate planning attorney ensures your plan evolves with you and remains legally sound.
Your attorney can also provide guidance on Tennessee-specific laws, ensuring your estate plan is going to work as intended when it comes time for your family to rely on it.
Ready to Create Your Comprehensive Estate Plan?
Creating an estate plan tailored to your needs is an act of love and responsibility. By addressing every component—from wills and trusts to powers of attorney and health care directives—you can secure your family’s future and achieve true peace of mind.
If you’re ready to start your journey toward a thoughtfully comprehensive estate plan in Tennessee, contact me today. Let’s work together to protect what matters most to you.