The 5 Steps To Creating An Estate Plan The ‘Right Way’

Just south of ‘Sawmill Creek…..

Hi Attorney Kevin Pritchett here

Why You Need An  Estate Plan
So you know you need an estate plan….To die without handling your affairs creates CHAOS and expense for your loved ones.

   So even though you KNOW you need it for all the usual excuses you never seem to get around to it….NOW’S THE TIME!!

 There’s A TON Of Misinformation
       About Estate Planning      
The other problem is that there’s a TON of misinformation about what constitutes a proper Estate Plan (most of it from people like your ‘Uncle Melvin’ or ‘the guy down the block ‘who always seem to have advice to give…..

     So to cut through all the noise…here are the 5 steps to creating an estate plan:

The 5 Steps To Creating An Estate Plan
Step 1:Decide Your Final Wishes
      Before you do ANYTHING you MUST sit down and WRITE OUT what your final wishes are.I use a FINAL WISHES PLANNER for my clients…
   Then after you’ve decided on what you want you complete these 5 steps:

Step 2:  Create Powers of Attorney For Healthcare
             and Property  
Powers of Attorney are documents you create that allow others to act on your behalf…in this case to handle your Healthcare decisions and your business affairs.   
Powers of Attorney are ONLY effective when you are still alive.  Once you pass, other documents takeover.    In Illinois, a Power of Attorney For Healthcare is used instead of a ‘Living Will.’..they both do the same thing…state your Healthcare wishes in the event you cannot.

Step 3:  Create A ‘Pour Over’ Will
    This is where people ‘mess up.’ I will is just one instrument of your Estate Plan. A will is NOT an estate plan in and of itself nor does it  avoid probate.A will is in fact the guide a probate judge will use to distribute your estate. 

      You use a will basically to state that all your assets will be distributed by your Trust (more on Trusts in a moment).     

  If ALL you have is a will your heirs will
still have to go through the expense and delay of Probate

Step 4: Create A Revocable Living Trust  
Ideally you want your Trust to be the document
that distributes your estate assets…not your Will.

     Why?  Your Trust WILL NOT go through Probate, is private and does not have delays and expense of Probate Court.

      There are many types of Trusts but the one used in most simple Estate Plans is a Revocable Living Trust…which means you can change it any time in your life.

Step 5: Update Estate Plan Regularly
      Once you create your Estate Plan make sure you review it at least once every 3 year sor so.  Life changes and your Estate Plan must adapt accordingly.

Reach Out To Me If You Have Questions. .
If you have comments or questions about any of this…send me an email :ironkop@gmailcomor if reading on my blog or Facebook page leave your questions or comments below.

Remember…..
‘Things don’t get better with neglect…..”

Kevin Pritchett, Esq
Law Office of Kevin Pritchett, Inc.
ironkop@gmail.com
312-505-1957
www.KevinPLaw.com