Your estate plan arguably consists of the most important documents you will ever create. That’s because many of these documents are designed to prepare you and your loved ones for life’s most challenging moments, including your possible incapacitation and your eventual passing.
By working with a South Valley estate planning lawyer, you can know with confidence that you are ready for nearly anything life could throw your way. While no one wants to think too much about unpleasant possibilities, being prepared gives you more control over the outcome. In addition, many products of your estate plan, such as a living trust, can provide enjoyable benefits during your lifetime.
You can count on New Mexico Financial Law to ensure that you’re prepared for the good, the bad, and the ugly all at the same time. Get started forming your estate plan in South Valley when you book a no-risk consultation with an experienced attorney by calling (505) 503-1637 or contacting us online.
Your will enables you to do three primary things:
A will can also include specialized provisions, such as contingency or disinheritance clauses. The information you include can vary, depending on your goals and preferences. However, every will should include the first two pieces of information above (and also the third, if you happen to have any dependents).
The primary reason to create a will is that dying without one means that your estate is “intestate.” An intestate estate has no legally binding instructions to guide its disposition. Accordingly, a court has to appoint a personal representative, who must then follow state laws for intestate inheritances.
New Mexico’s intestate succession laws require that 100% of your estate be split between your closest surviving relatives, according to the following arrangements:
As you can see, intestate succession laws completely obliterate any sense of control or free will you have over the distribution of your final estate. The only way to retain your control over who inherits your property is to draft and properly execute a will.
Creating a will may sound straightforward, but it’s easy to use improper or imprecise legal language. A will is, ideally, unambiguous, easy to interpret, and able to completely cover the most likely scenarios. Achieving all of these qualities is harder than it sounds, which is why working with a South Valley estate planning lawyer can be beneficial.
Your attorney can help you use precise, legally enforceable language and include all of the provisions needed to achieve your goals. They can also help you avoid common mistakes, such as creating overly complex or specific arrangements, which can make it more difficult to repay estate expenses and distribute assets.
With your attorney’s help, you can prepare for nearly any scenario, as well. For example, you can include a residuary clause, which states that any estate property not covered in your will should go to a specific heir, such as your surviving spouse. You can also name a succession of priority heirs, who inherit property if the original intended heir dies, or for whatever reason cannot accept their inheritance.
Most importantly, working with an experienced lawyer in South Valley ensures that your will can be validly executed. Failing to properly sign and witness your will could lead to it being tossed out of probate, resulting in intestacy.
Your attorney can take precautions accordingly, ensuring that you not only have a properly executed will, but also one that is safeguarded against common reasons for a will contest.
Your estate plan could include any number of documents. The ones you want to craft will depend upon your asset portfolio, the situations you want to prepare for, and the legacy you intend to leave behind.
Examples of some documents and strategic preparations that can be a part of your estate plan include:
All estate plan documents can be considered optional, technically, as there is no legal requirement to create any of them. However, everyone should at least make a will.
Wills are essential to avoid a situation called intestacy, where state laws force your representative to give away your assets to specific parties.
A South Valley estate planning lawyer is also likely to recommend that you create a durable power of attorney and an advance healthcare directive. Without these documents, your loved ones may struggle to access your finances to pay for your care and other basic needs. They may also agonize over how to proceed with a medical care plan in the absence of written instructions.
Incapacitation planning involves making careful preparations to provide guidance to care teams, grant appropriate authority to an agent, and state your wishes for care in the event you are unlikely to recover.
Another major concern for many estates is probate. This legal procedure can introduce delays, costs, and the possibility of legal challenges against your estate.
Fortunately, there are many probate avoidance methods available. These strategies transfer assets almost immediately after your death, rather than through probate. They can include:
Some estates can be made so negligibly small using these strategies that they can bypass probate entirely. Other estates may still need to go through a full informal probate, but the majority of their assets can be received by heirs before probate concludes.
Probate strategies can also involve exercising due diligence and taking other precautions to reduce the risk of an adversarial claim. To make probate as easy to manage as possible, you can refer to a South Valley probate lawyer for guidance.
A financial power of attorney delegates certain authority to an agent. The exact authority your agent carries depends upon the rules you set, but a typical power of attorney gives your agent control over the following:
When deciding what abilities your agent should wield, you want to ensure they have enough authority to handle nearly any situation that could come up. On the other hand, you may want to limit the agent’s authority if you feel the possible risks outweigh the benefits.
Often, it is recommended by New Mexico estate planning lawyers that you make your power of attorney “durable.” That status means that the power of attorney remains in effect even after you have been medically incapacitated. You can also make the POA “springing,” which means it only comes into effect after you have been incapacitated.
You can refer to an experienced estate planning attorney in South Valley for guidance. They can discuss the risks you want to avoid and how you want to make arrangements to achieve all of your goals.
An advance healthcare directive prepares you and your loved ones for a situation where you are unconscious, delirious, experiencing cognitive decline, or otherwise dysfunctional — conditions collectively known as “incapacitation.”
Your advance directive includes three different documents:
The decisions you make for your directive will affect your comfort, dignity, and chances of survival in a dire medical situation. Through this work, you can produce a document that specifically describes the types of care you want while potentially leaving other matters to your agent’s discretion.
You can weigh all of your options carefully with the help of our estate planning law firm in South Valley.
A trust is a legal arrangement where property is held and cared for by a trustee for the sake of beneficiaries.
There are many different types of trusts that can benefit your estate plan. To get started, you will have to decide between:
A South Valley estate planning lawyer can explain the differences between these options and how each choice could affect your overall estate plan.
The key is to remember that wills and trusts work in similar ways, with the caveat that a trust (unlike a will) can own and distribute property before or after your death.
Your trustee must follow specific guidelines that you set, and they have a duty to make competent, ethical choices for the sake of your beneficiaries. Accordingly, you should select a trustee who can handle their duties and carry out your estate plan faithfully.
Some trusts provide benefits during your lifetime, while other arrangements make more sense for legacy planning. An education trust, for example, can be established after your death to fund tuition and other educational costs for your young relatives after you pass. This arrangement creates enduring support for multiple generations, demonstrating your commitment to improving lives within your family, even after your passing.
You can go over your options for trust formation and start crafting a personalized strategy during a confidential consultation at New Mexico Financial Law.
The important thing with estate planning is to remember that you can always start small — but you should start today. Creating a will, an advance healthcare directive, and a power of attorney can give you peace of mind. With these documents in hand, you can know that you and your loved ones are prepared for nearly anything. You can also look forward to creating a trust, which can benefit your family during your lifetime, after your death, or both.
There are truly so many options available, which means that there can be an estate plan that’s a good fit for each and every situation. Uncover your optimal choices, and get personalized guidance that’s carefully aligned with your goals when you meet with a South Valley estate planning lawyer from New Mexico Financial Law. Schedule a confidential, no-obligation consultation today by calling our offices at (505) 503-1637 or contacting us online.
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