FAQs General Estate Planning
How long does it take to
make an estate plan?
What's the process of creating an
estate plan?
How much does estate planning cost?
What is Probate?
How long does it take to make an estate plan?
Working together, we can prepare a complete estate plan
for you in less than 6 weeks. You’ve probably been thinking
about this a long time, so let's get your plan done while
you're focused on it.
What's the process of creating an estate plan?
As with any matter, you are welcome to a free ½ hour
consultation to determine whether J. F. Henderson Law
is right for you. The meeting is not mandatory but is
an opportunity for you to ask questions of J. F. Henderson
Law. You may conduct this meeting by telephone or sit
down in J. F. Henderson Law’s office to meet face-to-face.
In undertaking an estate plan, you’ll first need to review
and complete J. F. Henderson Law’s “Getting Started” packet.
We can mail or email this to you. The “Getting Started”
packet includes questions you’ll need to complete (or
as much of them as you can) prior to our Initial Appointment.
It's common to leave some answers blank, but if you have
children who are minors, you’ll need to choose guardians
before we meet. It is also wise to also choose a trusted
person to serve as your executor/personal representative
(and at least one backup) prior to our Initial Appointment.
Once you’ve completed the “Getting Started” packet, we’ll
sit down in person for two meetings:
• Our Initial Appointment, and
• Our Final Signing Appointment
During our Initial Appointment, we’ll review your “Getting
Started” packet and get to the meat of your estate plan
– whether this includes just a will, or includes a health
care directive (a.k.a. living will), a durable power of
attorney or the creation of one or more trusts. This meeting
takes about 1 hour, depending on how many questions you
have.
After your Initial Appointment, you'll receive draft
documents in the mail to review. I’ll ask you to look
at the materials to see whether they appear to accurately
reflect your wishes. If you have questions about the drafts,
you are welcome to contact me.
Soon thereafter, you'll come back for a Final Signing
Appointment. If you still have questions about your drafts,
don't worry - by the end of this meeting, you'll know
how your estate plan works for your family. The meeting
takes about an hour and will give you a chance to get
questions answered, sign your final documents and learn
about how to take care of your estate plan over time (i.e.
who should get copies, how to keep it current, and where
to keep it safe, etc.).
How much does estate planning cost?
At the end of our Introductory Consultation, you will
sign a fee agreement listing all fees. There will be no
surprises after we agree on a fee. NOTE: As a general
rule, you will likely choose one of the following:
• A Will Portfolio for a single person (includes a will,
power of attorney, and health care directive but does
not include a living trust).
• A Will Portfolio for a couple (includes wills, powers
of attorney, and health care directives but does not include
a living trust).
• A Complete Estate Planning Portfolio for a single person
(which includes a will, a durable power of attorney, an
advance health care directive – a.k.a. living will, and
a living trust).
• A Complete Estate Planning Portfolio for a couple (which
includes wills for both spouses, durable powers of attorney
for property management, an advance health care directives
and a living trust). This includes the initial transfer
of property into the trust and any necessary amendments
for the first year after signing. There are some additional
fees for families with additional properties, private
partnerships or businesses, or complicated estates.
Depending on your needs, J. F. Henderson Law offers each
of these services at a flat rate so that you can understand
and prepare for all of the costs up front. If you are
looking to simply update part of your estate plan, J.
F. Henderson Law can provide you with flat rate pricing
or work on an hourly basis. If your matter is highly complex
and another attorney or legal professional is needed,
these costs will be arranged with each client in advance.
What is Probate?
Probate is the court-supervised process by which a will
is determined to be the will-maker's final statement regarding
how the will-maker wants his or her property distributed.
It also confirms the appointment of the personal representative
(a.k.a. executor) of the estate. It broadly includes the
process by which assets are gathered; applied to pay debts,
taxes, and expenses of administration; and distributed
to those designated as beneficiaries in the will.
Probate typically takes six months to three years to
complete and generally requires the service of a lawyer.
Even if you die without a will, your estate must still
pass through the probate system. In that case, the court
will apply state law to decide how to distribute your
estate among your relatives.
The typical probate procedure includes the following
steps:
• The will is filed with the local probate court (and
becomes public record).
• Your family conducts an inventory of your property.
• Your property is appraised.
• All debts, including death taxes, are paid.
• The court validates the will.
• Court costs, attorney's fees and executor's fees are
paid from the estate.
Then, and only then, is the remainder of the estate distributed
to your loved ones.
What can you tell me about federal estate taxes?
Estate planning is the process of organizing your financial
and personal interests so your wishes can be carried out
with a minimum of inconvenience and expense to your family.
Estate planning also can assure that your estate incurs
the minimum possible estate tax. The following is some
general information regarding estate taxes:
• The federal estate tax is imposed on the transfer of
an individual's property at death.
• The decedent's (deceased person’s) taxable estate equals
the value of the total property transferred at death (the
"gross estate") reduced by authorized deductions.
• The gross estate can contain property interests of all
kinds, including life insurance, jointly owned property,
and under certain circumstances, property the decedent
gave away before death.
• The estate tax return must be filed within nine months
of the date of death.
• There has been an increase in the amount of property
that you can leave your heirs free of estate tax. In 2007,
this allowance is $2,000,000 per estate, and it will gradually
increase to $3.5 million by 2009. The highest marginal
tax rate on the remainder of your estate will be 45%.
• The future of the estate tax is uncertain. The estate
tax is currently subject to complete phase-out in 2010
but a so-called "sunset" provision reinstates
the estate tax in 2011.
If you have additional questions concerning the tax implications
of a living trust or estate taxes, J. F. Henderson Law
recommends that you consult with a licensed tax professional.
