Financial Advisors: Estate Planning Attorneys
An estate planning attorney assists individuals in deciding the distribution of their assets after they pass away or become incapacitated. The lawyer examines your family and financial situation with care. They explain the estate planning process. They also assist you in making the optimal choices for yourself, your future family, and your beneficiaries.
Estate planning attorneys go beyond mere will preparation. They can guide you through a wide range of end-of-life preparations. Individuals with relatively straightforward estates might find that a comprehensive online software program suffices for their estate planning needs. However, in cases of greater complexity, the added expense of an attorney could prove valuable.
Do I need an Estate Planning Attorney?
Deciding if you need an estate planning lawyer depends on your situation, but certain things should affect your choice. Here are several considerations to bear in mind:
You might necessitate an attorney if:
You have children. Estate planning is important when you have young children or dependents. Another adult may need to manage your assets until the child grows up. Typically, this entails establishing a trust, a more intricate process compared to crafting a will.
Your state imposes its own estate or inheritance taxes. The federal estate tax is applicable to assets that exceed $12.06 million in 2022 or $12.92 million in 2023. The tax rates for this range from 18% to 40%. Additionally, certain states have their own estate taxes.
You feel uncertain navigating the legal complexities. Estate planning documents incorporate precise language that can carry distinct interpretations based on the context. An estate planning attorney can address queries you may not have contemplated.
You're susceptible to incapacity. A meticulously designed estate plan is indispensable for individuals grappling with chronic health conditions or disabilities. If you anticipate a period when you won't be able to independently manage your finances and health, an attorney can aid you and your loved ones in utilizing directive documents and advocating for your requirements. This assistance is especially valuable if the attorney possesses knowledge of elder or disability law.
You may not need an Estate Planning Attorney if:
All your assets are held in accounts with designated beneficiaries. Many individuals allocate the bulk of their savings to retirement and insurance accounts like Roth IRAs or 401(k)s. Typically, these assets transfer to the beneficiaries specified on the accounts, bypassing the will. If your beneficiaries are uncomplicated (and not minor children), advanced estate planning support might not be essential.
Your lawyer doesn't tailor the process to your needs. Attorneys vary in their approaches; some might offer a service akin to online estate planning software without going the extra mile. While an attorney who diligently coordinates your assets might entail higher costs, the investment is likely to yield long-term benefits.
Your initial estate planning is straightforward, and the option to hire an attorney later exists. Starting estate planning on your own and getting professional help as your situation and goals change is a good idea. This becomes especially relevant as you age or if your health undergoes changes.
How to find an Estate Attorney?
Identify Potential Candidates
Commence by outlining your objectives for the estate plan. This information will guide you in determining the appropriate type of attorney for your needs. Most people will look for a lawyer who can help them make wills, powers of attorney, and simple trusts.
Nevertheless, specific scenarios demand attorneys with distinct specializations. You might be concerned about improving benefit programs like Medicaid or addressing long-term care issues. In such cases, seeking assistance from a knowledgeable elder law attorney (or specialist) can be helpful.
In situations involving overseas financial interests, the skills of an attorney specializing in international estate planning might be essential. If you have legal issues in different places, it's smart to hire lawyers who can practice law in all those areas.
Engage in Candidate Interviews
After choosing a few top candidates, check if they are registered with the state bar and then schedule interviews. The possibility of an interview fee varies with each attorney.
Prepare comprehensively for your initial meeting, whether in person or via video conference. Bring along all necessary information, including your estate planning summary from Fidelity Estate Planner and any supporting documents. Additionally, compile a list of questions you intend to pose to potential attorneys, encompassing the following:
How many years have you been practicing law?
Where did you receive your education?
What methods of communication will you employ to keep in touch with me?
What are the preferred means of contacting you?
Will you be my primary point of contact, or will that role be fulfilled by another party, such as a paralegal?
Can I anticipate updates regarding the progress of my plan, or should I proactively seek updates?
What billing structure do you employ, and what is your rate (hourly or fixed)?
Are there any charges not included in the specified rate?
Remember, this interview provides you with the opportunity to identify an attorney whose demeanor aligns best with your preferences. Trust your instincts and seek a lawyer with whom you feel at ease.
Grasp Each Attorney's Fee Structure
Cost plays a pivotal role in your attorney selection process. Take into account your budgetary constraints and opt for a lawyer whose fees align with your financial capacity.
Various attorneys offer different approaches to consultations. While some provide complimentary initial meetings, others don't. Certain attorneys might offer a free consultation limited to a specific duration, such as the first hour, with charges commencing thereafter. Prior to your initial meeting, ascertain the precise consultation policy of each attorney.
Estate plan drafting fees can also exhibit diversity. Some lawyers propose a fixed fee, whereas others charge based on hourly rates. Flat fees generally encompass all elements essential for preparing estate planning documents.
Generally, straightforward estate plans, incorporating elements like a will, power of attorney, and medical directives, may range from $1,000 to $2,500. More intricate plans, encompassing components like trust documents, might extend to $5,000 or beyond. Rates can vary according to jurisdictions, states, and other variables.
Hourly rates can significantly fluctuate based on various factors, including the size of the law firm. Attorneys who charge by the hour usually calculate in increments of at least 6 minutes or 1/10th of an hour.
The attorney may charge extra for certain tasks like online research, court filings, document copying, or courier services. It's prudent to inquire about these potential expenses upfront before finalizing your selection.
Following your candidate interviews, opt for the attorney who best suits your needs, personality, and financial scope. Afterwards, the lawyer may give you a letter that explains the details of your legal agreement and the terms involved. This entails clarifying the expenses you'll bear and the attorney's billing approach. Your attorney will work with you to create an estate plan that covers all your needs.
Bottom Line
Selecting the right estate planning attorney is a crucial decision that requires careful consideration. Begin by identifying your specific needs and circumstances, which will guide you in determining the type of attorney required. Whether you opt for a lawyer that hinges on factors like having minor children, complex financial situations, or concerns about incapacity. Your financial advisors can help you find an estate attorney that fits your situation as well.
Sources:
https://www.nerdwallet.com/article/investing/estate-planning/estate-planning-attorney
https://www.fidelity.com/viewpoints/wealth-management/finding-an-estate-planning-attorney
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These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.