Estate Planning Guidance

Proper estate planning can help ensure you minimize the complication of probate for your loved ones. Wills, trusts and estates all fall under probate cases. Your estate plan creates a legal contract in writing that establishes your wishes about your estate’s administration upon your incapacity or death.

At Artherton Law, you can get the estate planning help you need to prepare for the future. I am attorney Angela Artherton, an estate planning attorney who proudly serves clients throughout northern Arkansas and southern Missouri.

Planning Your Estate

There are many factors to review when creating an estate plan. Without a will or a trust, the state will determine important matters including who will care for your children and who inherits your property. Every person over 18 years old also should have a living will, also called an advance directive, especially if minors are involved. Sometimes for larger estates, tax planning is required. I can assist in your estate planning, so no details are left out and no surprises arise.

Here are some things to consider when you are planning your estate:

• Are there mortgages or creditors for any estate larger than $100,000?
• Someone must take an inventory of the estate’s property, including personal property, real state and any financial accounts (bonds, stock, etc.).
• Are there assets that are subject to federal regulations and taxes?
• Are there any creditors (mortgages, credit card bills, or hospital bills, etc.)?
• If the estate is small and uncontested, a beneficiary must certify that at least 45 days have passed since the person’s death and all debts against the estate have been paid.
• Missouri and Arkansas do NOT have an estate or inheritance tax, but federal taxes may still apply.
• Federal gift and estate tax codes change often, and attorneys are skilled in knowing these changes so you don’t have to.
• Notice of the probate must appear in the newspaper and must run for at least two weeks. Creditors who have a claim against the estate have six months to answer.
• The personal representative pays any claims against the estate and any taxes owed.
• The estate may have to file a final income tax return.

You should also make sure your will is always up to date. When life changes, your estate plans should also change. If you should pass on without making changes to your estate plan after a major life event, your loved ones may not end up getting the inheritance you want them to receive. Changes to wills could happen in the following instances:

• Marriage or divorce
• Birth or adoption of a child
• When a beneficiary of your estate dies
• When you move to another state
• When your children are no longer minors
• When federal or state tax laws affect your estate
• If your net worth increases drastically
• When someone you’ve named as an executor, trustee or guardian is no longer able to fulfill their role, or when you decide to change one of these
• When you have a change in the way your property is distributed

Missouri Estate Planning FAQs

Determining what estate planning tools will work best for you can be confusing, but I am here to help make things clear. Below are answers to some questions I hear quite often from clients.

What documents should be included in a basic estate plan?

A basic estate plan typically includes a:

• Will: A legal document that specifies how your assets will get distributed when you die and who will get them.
• Durable power of attorney: A legal document that allows an agent make crucial financial or medical decisions for you.
• Health care power of attorney: A legal document that lets an agent make health care and medical decisions for you.
• Living will/advance health care directive: A legal document that lists your wishes and preferences for medical care and end of life treatment.

Depending on your situation, you might also consider managing your assets through a trust.

Do I need a will, a trust, or both?

The documents you need will depend on your circumstances. While a will can be important for outlining how your assets will be distributed after your death, a trust can be beneficial for managing assets during your lifetime and after death. Trusts can also offer privacy and potentially help you avoid probate.

How do powers of attorney and advance health care directives work?

A power of attorney allows you to appoint someone to make financial decisions for you if you become unable to do so. A health care power of attorney lets you designate someone to make medical decisions for you that are in line with your wishes. An advance health care directive or living will is the document in which you specify your preferences for medical treatment if you’re unable to communicate them yourself.

When should I review and update my estate plan?

You typically want to review your estate plan every few years or whenever you experience significant life changes, such as:

• Marriage
• Divorce
• The birth of a child
• Significant changes in your financial situation

Changes in state laws can also affect your estate plan. That’s why it’s important to stay informed and regularly consult with an experienced Missouri estate planning attorney.

What is the trustees’ fiduciary duty?

Trustees have a fiduciary duty to responsibly manage assets in the trust and act in the best interests of trust beneficiaries. This includes:

• Following the terms of the trust
• Investing assets prudently
• Avoiding conflicts of interest
• Acting with loyalty and impartiality toward all beneficiaries

Trustees must also keep accurate records and provide reports to the beneficiaries as required.

Who gets my stuff if I don’t have a will or trust?

If you pass away without a will or trust, your assets will be distributed according to the intestacy laws of your state. In Missouri, assets typically go to the closest relatives, such as a spouse and children. If there are no immediate family members, the estate may be distributed to more distant relatives. If no relatives can be identified, the assets may eventually go to the state. It is advisable to create a will or trust to distribute your assets according to your wishes.

How do beneficiary designations and digital assets fit into my plan?

Beneficiary designations on accounts like life insurance and retirement plans supersede instructions in a will. That’s why it’s important to keep them updated. Digital assets, such as online accounts and digital currencies, should also be addressed in your estate plan to ensure executors or trustees manage them according to your wishes. This may involve including instructions and access information in your estate planning documents.

Start Your Planning Today

If you are looking for help developing or updating your estate plan, do not wait another moment to begin planning. Contact my office at 417-419-9518 or email me here to schedule your initial consultation today.