Wills, Trusts, and Estates Process
Virginia Family Law Center, P.C., assists families with estate planning matters, including the formation of trusts and wills. Here is an overview of the steps involved in the estate planning process.
Step 1: Define Your Estate Planning Objectives
Estate planning begins with identifying your goals. Ask yourself what matters most. Is it ensuring your loved ones are financially secure or protecting assets to pass on to future generations? Some individuals wish to plan for unexpected medical needs. Your attorney helps you clarify and prioritize these objectives so every decision aligns with your wishes and values.
Step 2: Create a Will
A will is the foundation of any estate plan. It specifies how your assets will be distributed after your death and appoints a personal representative to manage this process. If you have minor children, your will should name a guardian for them to avoid the court making these decisions. Without a valid will, Virginia’s intestacy laws will determine who receives your assets, which may not align with your wishes.
Step 3: Establish a Trust
For more flexibility in asset distribution, consider establishing a trust. Trusts allow you to avoid probate, keep financial affairs private, and ensure beneficiaries receive assets under the conditions you specify. For instance, you can create a revocable living trust that provides for you during your lifetime and seamlessly transfers assets to your family after your passing. We guide you through the options and help design trusts tailored to your particular needs.
Step 4: Identify Beneficiaries
Naming your beneficiaries is critical to ensuring your estate plan works as intended. This includes listing beneficiaries not only in your will or trust but also on accounts like life insurance policies, retirement plans, and annuities. Oversights in beneficiary designations can lead to disputes or unintentionally disinheriting someone.
Step 5: Discuss Healthcare Planning
Estate planning isn’t just about distributing assets. It’s also about preparing for circumstances where you may be unable to make medical decisions for yourself. An Advance Medical Directive can express your wishes for end-of-life care and appoint a healthcare proxy to act on your behalf. These documents spare your family from making painful decisions in moments of crisis. We provide the legal tools to give you and your loved ones peace of mind.
Step 6: Understand Taxes
Estate taxes can significantly impact the value of what you leave behind. While Virginia doesn’t impose a state estate tax, federal estate taxes may apply if your assets exceed a certain threshold. Additionally, income taxes may arise from inherited retirement accounts. Our attorneys help individuals explore options to maximize the legacy they leave for their heirs.
Step 7: Draft Documents
Once your plan is established, it’s time to draft the appropriate legal documents. This may include your will, trusts, powers of attorney, and healthcare directives. These documents must comply with Virginia law and clearly reflect your unique objectives.
Step 8: Execute Your Plan
The final step is to formally execute your estate plan. This involves signing documents in accordance with Virginia’s legal requirements, such as having them witnessed or notarized. Additionally, proper execution includes retitling assets into the name of your trust (if applicable) and regularly reviewing your plan to ensure it evolves with life changes such as marriages, divorces, or births.
Our law firm will guide you through these steps and remain available to update your plan as your needs change.
