Top 3 Reasons Michigan Families Put Off Estate Planning

Many people put off estate planning because they have misconceptions about the process, along with busy schedules. Although almost everyone agrees that estate planning is something they should do, they are always waiting for a better time to do it. Many people also agree that it is important to have an estate plan in place not only to pass on their property to loved ones upon death, but also when they are living but unable to make financial and medical care decisions for themselves. Understanding the misconceptions about estate planning can help you follow through on something you know that you should do, but have never done.

Reason #1: The High Cost for Estate Planning

Contacting an experienced estate planning attorney about a flat fee billing structure for estate planning services should help to dispel the assumption that estate planning is too expensive. Flat fee rates, also known as fixed fees, are fees that you agree upon before an attorney begins work on your estate plan.

Flat fees provide a straightforward and transparent approach for estate planning services with mutual expectations that are beneficial for both client and attorney. A flat fee agreement should also include all client communications, conferences, review and finalization of documents, and any legal research that may be needed. In addition, there should not be any cost or obligation for an initial consultation to discuss an estate plan.

Comprehensive Basic Estate Plan Fees

A comprehensive basic estate plan typically includes more than just a Will or Trust. Consequently, basic estate plans are typically “bundled” plans that include additional documents to ensure all estate planning needs are addressed.

At Ager Law Office, a basic estate plan starts at $1,300.00 and includes the following:

• Last Will and Testament
• Financial Durable Power of Attorney
• Patient Advocate Designation with Advanced Medical Care Directives
• Designation of Funeral Representative

The fee also includes an attorney’s review of designated beneficiaries on financial and retirement accounts

Basic Plan for a Trust Fees

The flat fee cost for a basic plan for a Trust is higher because it typically provides for a more complex distribution plan for assets which could involve distributions to minor children and young adults over an extended time period. A Trust also avoids probate administration. A basic Trust estate plan includes the following:

• Revocable Living Trust
• Certificate of Trust Existence and Authority
• Comprehensive Transfer Document for Personal Property
• “Pour Over” Will to distribute any unforeseen probate assets to the Trust
• Financial Durable Power of Attorney
• Patient Advocate Designation for Health Care with Advanced Medical Care Directives
• Funeral Representative Designation

A basic Trust estate plan also includes an attorney’s review of designated beneficiaries on financial and retirement accounts.

Enhanced Life Estate Deed Fees

The cost of an Enhanced Life Estate Deed, commonly referred to as a “Lady Bird Deed” should also be based on a flat fee. Typically starting at $300.00, a “Lady Bird Deed” is an effective estate planning tool that avoids probate administration for real estate property. It allows your home and other real estate to be automatically conveyed to a named person (or persons) in the deed (or to your Trust), upon death if the property is still titled in your name.

Most importantly, during your lifetime, you continue to hold complete ownership and control over the property with the power to sell or otherwise convey ownership of the property. You can also draft a new deed if circumstances change.

Reason #2: The Belief That Estate Planning is For the Wealthy

Estate planning is not just for the wealthy. Estate planning is for everyone. A well-prepared estate plan is often more important for families with more limited assets than the wealthy because of the high costs of not having a plan in place or having a plan that is not properly prepared.

For a reasonable flat fee, you should be able to obtain a tailor-made plan for an orderly distribution of your assets and property following death. The plan should also serve the equally important purpose of protecting you and your loved ones during your lifetime in the event you become incapacitated, whether temporarily or permanently.

Reason #3: My Family and Loved Ones Know How I Want My Property Managed and Distributed

Verbal agreements and understanding about managing and distributing property have no legal basis in probate court. If you die without a Will (referred to as “dying intestate”), Michigan laws of intestate succession determine who gets your property and how it is distributed. Those laws can result in unexpected consequences that are contrary to your wishes. However, if you have a Will or Living Trust, you decide who gets your property and how your property is distributed.

Even if you have a Will or a Trust, your family may still face difficult problems during your lifetime if you are unable to make your own decisions about finances or health care. If you become incapacitated from a serious accident or illness, someone must be able to make those decisions on your behalf.

Under Michigan law, no one can assume those responsibilities in the absence of a valid Durable Power of Attorney for financial matters along with a valid Patient Advocate Designation for health care. If you become incapacitated and do not have these important documents in place, the probate court may have to appoint a guardian and conservator in order for someone else to have the legal authority to act on your behalf.

Schedule a Free No Obligation Consultation with Ann Arbor Estate Planning Attorney Bill Ager

Now is the time to go forward and plan for the future. It is essential that you talk with an experienced estate planning attorney. Using forms or online services is full of risks. A do-it-yourself approach can completely defeat the purpose of making an estate plan that is tailored to fit your needs, particularly if there may be issues in the future about competency or misunderstandings about how property is to be distributed after death.

In my practice at Ager Law Office, I help individuals and families with their estate planning needs, including Wills, Trusts, Durable Power of Attorneys, Patient Advocate Designations and Lady Bird Deeds. From my Ann Arbor office, I serve clients throughout Washtenaw County. To talk with me about scheduling a free consultation for a basic estate plan, call (734) 649-0784, send an email to bill@agerlawoffice.com, or use the online contact form on this website.