INDIANA ESTATE PLANNING

FREQUENTLY ASKED QUESTIONS

Q: I don't have much, why do I even need an estate plan?

A: Estate planning is not just about your financial assets. It also involves outlining who will make decisions about your medical care and finances if you become incapacitated. This is crucial for ensuring your wishes are respected and your loved ones are not left to navigate a difficult situation.

Q: I’m married. Won’t my spouse make my medical and financial decisions?

A: In some cases, yes, your spouse would be the default decision-maker. However, there are instances where a court may need to intervene, which can be lengthy and costly. Additionally, banks and other financial institutions may not accept your spouse's authority without a valid Power of Attorney. This document ensures that your spouse has immediate access to your finances and can manage them effectively.

Q: Can’t we just get our documents ordered after something happens to me?

A: No, having these documents in place is essential while you are still competent to make decisions. Once your mental capacity is compromised, obtaining the necessary authorizations becomes more challenging and time-consuming. A Power of Attorney, for instance, can only be designated by you when you fully understand its implications.

Q: I am married, won’t my money just go to my spouse if I die?

A: If you die without a will, your assets will be distributed according to Indiana's intestate succession laws. This could mean that your spouse receives a portion of your assets, while the remaining portion may pass to your children or other family members. However, this distribution may not align with your specific wishes or the needs of your loved ones.

Q: I have young children. How will my assets be handled if I die?

A: If you have minor children, a court will appoint a guardian to manage their inheritance until they reach the age of majority (18). This may not be the person you would have chosen to oversee their financial well-being. Creating a will allows you to designate a trusted individual as guardian and outline your specific wishes for their inheritance.

Q: What is probate and why should I avoid it?

A: Probate is a court-supervised process for distributing the assets of a person who has died without a will. This process can be time-consuming, expensive, and public, and it can also lead to delays in the distribution of your assets to your loved ones. By having a will in place, you can avoid probate and ensure that your assets are distributed according to your wishes more efficiently and privately.

Q: What are the benefits of a living trust?

A: A living trust is a legal document that allows you to transfer ownership of your assets to a trustee to benefit your beneficiaries. This can be a valuable tool for avoiding probate, minimizing taxes, and providing for your loved ones in a more flexible and customized way.

Q: What are the different types of estate planning documents?

A: A variety of estate planning documents can be used to manage your affairs and protect your loved ones. These include wills, trusts, powers of attorney, healthcare directives, and beneficiary designations. Each document serves a specific purpose and should be carefully considered as part of your overall estate plan.

Q: Why is it important to review my estate plan periodically?

A: Your life circumstances can change over time, and it is important to review your estate plan periodically to ensure that it still reflects your current wishes and needs. This includes reviewing your beneficiary designations, updating your contact information, and addressing any changes in your family structure or financial situation.

Q: What are some of the challenges of estate planning?

A: One of the challenges of estate planning is that it can be a complex and emotional process. It is important to be well informed about your options and to work with an experienced estate planning attorney to create a plan that is tailored to your individual circumstances.

Q: How can I avoid probate if I own a business?

A: If you own a closely held business, you may want to consider creating a business succession plan. This plan can help you ensure that your business is transferred to your heirs or successors smoothly and efficiently, and it can also help minimize tax liability.

Q: What are the benefits of having an estate plan for unmarried couples?

A: Unmarried couples often don't have the same legal protections regarding estate planning as married couples. Without a will or other estate planning documents in place, your assets could