Estate Planning

What does an Estate Plan include?

Generally speaking, a comprehensive estate plan typically includes either a will or a living trust, Indiana Healthcare Representative, Durable Power-of-Attorney and a Living Will.

What is a Living Trust and why would I need one over a Will?

Having a properly written Living Trust avoids the unwanted and unnecessary expense of Probate. If you have a Will, after you pass away your family will have to go to probate in order to gain access to the assets and money you leave them in your Last Will and Testament. The average probate estate costs more than $5,000.00 and lasts more than a year. Additionally, Probate Court proceedings are public record and the trial rules require that your Last Will and Testament is published with the Court when opening a Probate case. This means that anyone that has internet access can see your will provisions.

When your estate plan consists of a Living Trust, a Trust Agreement is created, and all of your assets are transferred during your lifetime in the name of your Trust. Usually, a client and their spouse, if applicable, will be named pursuant to the terms of the trust agreement as co-trustees. You continue to conduct your financial affairs as you did previously, but your assets are titled in the name of your newly established trust. It is then, your trustee would name the person or persons you want your estate to go to as successor trustee(s), and upon your passing, your loved ones will seamlessly be able to access the assets you left to them. You would also have the option to limit their access to the entirety of your estate in order to provide income to them for a specified period of time.

I have a Living Trust, so I should be all set, right?

Not necessarily! Creating a Living Trust and executing it does not mean that your assets will pass pursuant to the terms. It is critical that your Living Trust is properly funded. The process of properly funding your living trust consists of confirming that your assets are titled in the name of your newly formed living trust. At Calhoun Law, we provide each client with instructions to each of their financial institutions informing them of the client’s newly formed trust along with instructions to re-title the asset accordingly. Additionally, we prepare and file new Deeds with the County Recorder’s office in order to properly fund your new trust with your Indiana Real-Estate. If you already have a Living Trust and are not sure whether your trust has been properly funded, contact us and setup an appointment.

What does it cost to have an attorney do my Estate Plan?

While we cannot quote an exact price for an estate plan without knowing your specific needs, most comprehensive estate plans range from $1,000.00 – $2,500.00 depending on the complexity of your assets. If you have several different investment accounts, own numerous properties, or have an ownership interest in a business, this can cause additional expense. A comprehensive estate-plan based around a Last Will and Testament tends to fall in the lower end of the range, whereas an estate-plan based around a Living Trust falls closer to the top-end of the range.

What options do I have to plan for my disability?

Similar to retirement planning, it is extremely wise to plan well in advance for your disability. Let face it, most of us will get to a point where we are unable to fully take care of ourselves. By having a living trust set up, in conjunction with a durable power-of-attorney, you can give the authority to a successive trustee to be able to access your financial assets for the purpose of providing for you if you are no longer able to.

Aside from planning for your disability from a financial standpoint, it is a good idea to consider having your medical affairs in-line so that your wishes are fulfilled in the event you are unable to express them. It is recommendable to execute both a living will and an Indiana Healthcare Representative Appointment. These documents work hand-in-hand with each other, insomuch that a Living Will expresses what your healthcare wishes are as it often relates to things like life-support, artificial nutrition, mechanical resuscitation of the heart, and being placed on a ventilator. Since it probably isn’t practical to account for every healthcare situation you may encounter, your Healthcare Representative Appointment can act as a safety-net and give the authority to that person to make decisions if your healthcare places you in a situation that is not expressly included in your Living Will.

If I have to go into a nursing home, will they take my home?

Nursing-Home care can be very expensive but one way you can afford to pay for it is by qualifying for Medicaid. However, there are several limitations that can make a person ineligible from qualifying. There are several advantages that can be lawfully exercised that can allow you to both keep your assets and be able to pay for nursing home care such as establishing an irrevocable Medicaid trust. Keep in mind, there are time limitations on when you can establish this type of trust and still protect your assets.

My family member passed away without having a Will or a Trust, is the State going to take their assets?

Not generally, and this is a common misconception among many. Most of my clients have often expressed concerns over this issue. With that said, in Indiana, if someone dies without a will or a trust, their assets will pass to their family upon the proper petition being filed with the County Probate Court. Who gets what depends on how closely related they were to the deceased, which is spelled out in the Indiana intestacy statutes which can be found in Title 29 of the Indiana Code.