Author: Hoffman & Forde, Attorneys at Law

6 Questions to Ask an Estate Planning Attorney

Posted on March 24, 2023 by Hoffman & Forde, Attorneys at Law - Estate Planning

Estate planning is an important process for anyone with assets to pass on, but it’s also unfamiliar. For this reason, it’s best to have assistance from a lawyer who knows all of the options available to you and how to prepare the necessary documents to stand up to scrutiny later.

If you plan on consulting with a lawyer, you probably want to get the most out of your meetings. To help with this, here are a few questions to ask your potential estate planning attorney.

1. How Much Experience Do You Have with Estate Planning?

As you may be aware, most lawyers have specialized areas of practice, and many have little or no experience with estate planning. In contrast, any attorney could draft a simple will, anything more complicated that should be handled by an estate planning specialist. Many rules govern the preparation of wills, trusts, and other estate planning documents, so you want to be sure everything is done correctly and efficiently.

2. What Do You Charge for Your Services?

No doubt, this is already on your mind, and it’s perfectly acceptable to ask about the attorney’s fee structure. Some attorneys charge a flat fee for estate planning, others charge by the hour, or they may offer both options.

3. How Long Will It Take to Draft My Estate Plan?

With any legal service, it’s always good for both lawyer and client to be on the same page concerning how long the process will take. Attorneys are used to working on longer time lines and sometimes forget to communicate this to their clients. Estate planning is a fairly straight-forward service, so an attorney should be able to give you an accurate estimate.

4. Can You Create a Comprehensive Estate Plan?

A comprehensive estate plan involves more than just a will. You may want to prepare trusts, powers of attorney, life insurance documents, and more. A good estate planning attorney should be able to assist you with any of this, and provide you with guidance to decide on the best course.

5. Do You Offer Periodic Reviews of My Estate Plan?

Estate planning may seem like a “one and done” process, but it’s important to check periodically that everything is up to date. Life events such as marriage, divorce, and children will likely profoundly affect your estate planning goals. Many attorneys offer a periodic review for a set fee, so it’s good to ask about this service.

6. What Happens If You Retire or Change Firms?

Hopefully, it will be many years before you pass away and your estate plan goes into action; it’s possible that, in the meantime, your attorney retired, moved to a different firm, or even passed away themselves. However, estate planning lawyers should have a plan in place for this eventuality, and it’s important to find out what it is for your peace of mind and to make things easier for your loved ones.

Schedule Your First Meeting

Now that you have some questions prepared, the next step is to schedule an appointment. At Hoffman & Forde, our estate planning team has years of experience helping clients craft plans that meet their unique needs. We are at your disposal to answer any questions and to get the process started right away. Contact our office to set up a consultation.

Do You Need a Lawyer for a Commercial Lease?

Posted on March 17, 2023 by Hoffman & Forde, Attorneys at Law - Commercial Real Estate

Residential leases are full of legally required safeguards to help keep them fair because everyone needs a home, and virtually no one hires an attorney to review their rental agreement. Commercial leases are an entirely different beast. The rules protecting home renters do not apply in the commercial context, as both parties are presumed to be “sophisticated” (i.e., they understand the law and the world of commercial real estate).

The good news is that this frees up both parties to negotiate almost all of the agreement’s terms, allowing for much greater flexibility. However, it does mean that commercial lease negotiations are generally more complex. For this reason, it is often a good idea to hire a commercial real estate attorney to help you. Here are a few reasons why.

Initial Negotiation

As mentioned above, most of the terms of a commercial lease are negotiable. This can be a good thing, as it allows you to reach an agreement that meets your specific needs, but to take advantage of this, you need to be aware of your options. Commonly negotiated terms include:

Property Taxes & Insurance – Depending on the type of lease, it’s not unheard of for renters to be responsible for not just the rent but also property taxes and insurance premiums. Of course, this is more advantageous for the landlord, but as with everything in negotiation, it can be used to obtain more favorable terms in other areas.
Maintenance Costs – This can cover everything from security to utilities, which can add up quickly. The renter can be responsible for some or all of these costs, and the lease should identify this.
Term Length – Commercial leases are typically of a much longer duration than residential leases, and it’s not uncommon to see leases that last five years or more. Longer leases usually mean lower rent, though they also mean higher potential costs if you want out early.
Competitor Clause – If you are a retailer or restaurant owner, you may want to restrict the landlord from leasing to competitors near your business.
Termination Clause – If you need to end the lease early, what happens should be clear. Are you responsible for paying the remainder of the lease? Can you sublet the space?

These and other important terms are all on the table during a commercial lease negotiation. Having an attorney who is familiar with all of your options can help you find the right balance.

Renegotiating Your Commercial Lease

If there’s one constant in business, it’s that things are constantly changing. The economy goes up or down, consumer trends shift, etc., which can affect your business. If you find yourself in a position where you need to lower costs, it may be possible to renegotiate your commercial lease. Of course, the landlord’s willingness to renegotiate will depend on the real estate market. Still, in general, landlords prefer the stability of a paying renter compared to the uncertainty of finding a new one.

Having an experienced real estate attorney can greatly help this situation. Not only do they understand the ins and outs of commercial leases, they can also relieve a lot of stress when needed.

Talk to a Commercial Real Estate Specialist

Our experienced team understands the Southern California real estate market and knows how to get the best deal for your business. Whether you are just starting or are looking to renegotiate, Hoffman & Forde can help put your business on the best footing possible. Schedule a consultation today to talk to one of our real estate specialists.

Do I Have a Civil Lawsuit Case?

Posted on February 24, 2023 by Hoffman & Forde, Attorneys at Law - Civil Litigation

When you’ve been wronged by someone else, intentionally or by accident, and your injuries are substantial, you may be left wondering if you have a legal remedy in the form of a lawsuit. In order to have a civil lawsuit case, there has to be some legal theory supporting the other party’s liability. This is where the expert knowledge of an attorney comes in, understanding the law and applying it to the facts of your case. Beyond this, there are practical realities that must be taken into consideration as well.

Legal Liability

In most civil lawsuit cases, liability is based on the commission of a “tort.” A tort is a civil wrong, as defined by common law, i.e., the collective history of judicial opinions going back hundreds of years. There are many types of torts, from battery to conversion (theft) to defamation. It would be impossible to cover all of them here, but we can briefly overview the most common tort: negligence.

Negligence is so prevalent because it covers almost every situation where an injury is caused by an accident. To demonstrate negligence, a plaintiff must prove each of these four elements:

1. Duty of Care

A duty of care means that, in a given situation, the defendant had an obligation to prevent harm to the plaintiff. For example, a doctor has a duty of care to their patient, business owners have a duty of care to people who come onto their premises, and drivers must operate their vehicles safely on the roads.

2. Breach of Duty

In order to be negligent, a defendant must have breached their duty of care to the plaintiff by failing to exercise reasonable care.

3. Causation

The defendant’s behavior must have been a “but-for” cause of the plaintiff’s injuries, meaning that the injuries would not have happened if not for the defendant’s actions. The breach also must be the “proximate cause” of the injuries, meaning it was a foreseeable consequence of the defendant’s actions.

4. Damages

The plaintiff must have suffered legally recognized harm to themselves or their property.

Whether the case involves a traffic accident or medical malpractice, these four elements provide the general roadmap in a civil lawsuit for negligence.

Practical Considerations

Virtually every plaintiff’s attorney works on a contingency-fee-basis, meaning the client doesn’t pay any up-front fees, and the attorney will take a portion of any compensation received. Overall, this arrangement is very beneficial to clients and makes legal representation more accessible to everyone, but as a result, there are some practical considerations to take into account.

The Complexity of the Case

How much time and effort will it take to litigate the case? Most civil lawsuits settle before trial, but not all of them. The case may require a lengthy discovery process, numerous court hearings, and even a months-long trial with expert witnesses. A more complex case means more investment in time and money and a less certain outcome. The attorney will have to account for this increased risk.

The amount of damages at issue impacts this calculation; a lawyer simply cannot afford to take the risk if the amount is too low. However, people often underestimate how much their case is worth, so you shouldn’t let this factor discourage you from consulting with an attorney.

The Ability of the Defendant to Pay

You can’t get blood from a stone. A $10 million judgment is just an expensive piece of paper if the defendant has no assets or means of paying you. A very real consideration, therefore, is the defendant’s ability to pay. However, sometimes other parties are vicariously liable, such as when a worker injures someone else during employment, so it’s still worth discussing your case with an attorney.

Talk to an Attorney

The only real way to know whether you have a civil lawsuit case is to sit with a lawyer and tell them your story. A personal injury specialist can quickly evaluate your case, ask the right questions, and give you an idea as to your options moving forward.

The first step is to schedule a consultation. Contact our office to get started today!

The Benefits of Hiring an Attorney to Help with Your Tax Problems

Posted on February 15, 2023 by Hoffman & Forde, Attorneys at Law - Taxes

Tax problems are a special kind of misery. The U.S. Tax Code is so complicated most people just try to muddle through it every year and hope no one is paying too much attention. Then one day, a letter arrives and it turns out the government was paying attention—now they’re demanding money you don’t have, threatening fines or even jail time.

If you find yourself in a situation like this, you shouldn’t go it alone. Here are the benefits of hiring a tax attorney to relieve the burden and drastically improve the outcome.

You Need Expertise

As the saying goes, “When you find yourself in a hole, the first thing is to stop digging.” Maybe you’ve made mistakes; don’t worry. As we said before, tax laws are very complex and always changing. So the important thing is not to make any more mistakes going forward.

You’re probably not a tax expert and will unlikely become one in the next few weeks. But, on the other hand, the people who work for the IRS or California’s Franchise Tax Board are tax experts, and they don’t give points for not understanding the law. So you’re going to need help.

Someone who understands the tax system can help you correct mistakes from past filings and chart a path forward. For example, if you owe money in back taxes, there are options beyond making a single lump-sum payment. There are even programs to have your debt forgiven. A tax attorney will be familiar with all of this.

Reduce Penalties

Tax problems are often accompanied by fines, penalties, and interest that has accrued in the meantime. A $1000 mistake can quickly balloon into a $5000 or more debt. The good news is that what you have to pay is often negotiable. Attorneys that regularly deal with the IRS, FTB, and other tax authorities may be able to reduce the total amount you owe significantly.

Note: Contact an attorney immediately if you are facing a criminal tax investigation. These cases can result in hefty fines and jail time; you will need legal representation.

Take the Burden Off Your Shoulders

The emotional stress of dealing with tax problems can be immense. The underlying legal problems are complex, and the amount of money at issue is often daunting. This stress can drive people to make more mistakes or, even worse, just ignore the problem.

You need someone who can look at your documents and say, “Okay, I see what happened. Here’s what we’re going to do….” Hearing these words can be a great relief, and so much of the stress you’ve been carrying will fade once you hand your tax problems over to an expert.

Get Started with a Consultation

The first step in dealing with your tax problems is to schedule an appointment with an attorney. At Hoffman & Forde, our tax attorneys have years of experience resolving these matters and improving client outcomes. Book a consultation to learn more about your options.

The Different Types of Power of Attorney

Posted on January 27, 2023 by Hoffman & Forde, Attorneys at Law - Estate Planning

Power of attorney (POA) is a very useful legal instrument that authorizes someone to make decisions on your behalf. Similar to an executor who has the power to handle your affairs after you pass away, the person to whom you grant power of attorney (called an “agent” or “attorney, in fact”) has the power to handle things while you are still alive. Contrary to what the name implies, this other person does not need to be an attorney or even have any special skills. Additionally, there are different types of power of attorneys.

Creating one or more POA documents is a common component of estate planning, as it helps protect you, your family, and your property in certain situations. Here are the different types of power of attorney you should know.

Durable vs. Non-Durable Power of Attorney

You may have heard the term “durable power of attorney” before. It means the agent can act on the principal’s behalf even if they become incapacitated. (“Incapacitated” means you can no longer make decisions on your own.) On the other hand, non-durable power of attorney ends when the principal becomes incapacitated. So, for example, if you were to grant POA to your stock broker so they could make trades on your behalf, it would usually be a non-durable POA.

Springing Power of Attorney

Whereas power of attorney usually goes into effect immediately upon signing, a springing power of attorney only becomes effective once certain conditions are met. Most commonly, it becomes effective in the event the principal becomes incapacitated.

While springing POA makes sense in theory, it can create complications and delays. This is because incapacitation is not always clear. For example, if the principal has dementia or has a brain injury, there may be disagreements as to whether they can make their own decisions. In the meantime, medical bills and other affairs that must be managed could be piling up.

General Power of Attorney

In California, a general power of attorney allows the agent to handle any of the principal’s financial affairs, such as paying bills or selling real estate. However, a general POA does not authorize the agent to make healthcare decisions. Typically, this POA is non-durable, meaning it ends if the principal becomes incapacitated.

Limited Power of Attorney

Limited power of attorney also usually relates to handling financial affairs but is restricted in scope. For example, if you own an apartment building, you might grant a limited POA to a property management company to enter into leases, pay bills, etc.

Medical Power of Attorney

A medical power of attorney allows the agent to make healthcare decisions on the principal’s behalf if incapacitated. This can include anything from regular checkups to end-of-life care. Often, the principal will have previously created some healthcare directives defining what they want to happen in certain situations, such as whether to continue life support if they are in a vegetative state.

Choose the Right Power of Attorney

Regardless of which type of power of attorney you might need, a power of attorney should be an integral part of your larger estate plan. Speaking to a lawyer is usually the best first step in determining what POA documents are right for you and ensuring all contingencies are covered.

Speak with one of our experienced professionals. They will review your current situation, and help you design a strategy to meet your needs. Contact our office to get started.

Estate Planning Mistakes and How to Avoid Them

Posted on January 17, 2023 by Hoffman & Forde, Attorneys at Law - Estate Planning

Estate planning is a unique area of law. It’s not adversarial, so it’s relatively easy to accomplish all your goals, but if you make any mistakes, you won’t be around to fix them. For this reason, it’s essential to put a lot of thought into every aspect of your estate plan and benefit from a professional’s advice.

To help you understand your estate planning needs, we’ll go over some of the most common mistakes people make and how to avoid them.

1. Waiting Too Long

This is easily the most common mistake people make. Even though most people recognize the need for an estate plan, it is easy to keep putting it off. None of us enjoy contemplating the prospect of our death, but it will happen someday, and it’s not always as far in the future as we might hope. An unexpected death is tragic enough; failing to leave a clear plan for your estate only makes things harder for your loved ones.

How to avoid: Stop delaying and start thinking seriously about your estate plan. It’s not as time-consuming or expensive as you might think.

2. Failing to Minimize Tax Burden

Every person wants the maximum portion possible of their estate to their beneficiaries and the minimum amount possible to the government via taxation. However, with a little guidance, it is possible to minimize your estate’s tax burden or avoid taxes altogether.

How to avoid: Not all estates will be taxed, so it’s important to first out if all or portions of yours could be taxed. If so, various means, such as living trusts and charitable donations, could reduce or eliminate those taxes. This is best accomplished with the aid of an attorney.

3. Drafting Complex Documents on Your Own

It is possible to create a straightforward estate plan with a fill-in-the-blank will, you find online, but it’s not always a good idea. It may work for someone with few possessions and very specific wishes about who should receive their property after they die. Still, the larger and the more complicated the estate, the more problematic a DIY approach is likely to be.

Because the decedent is not around to answer any questions, estate law is full of formalities that must be followed to prevent mistakes and fraud. This is especially true when it comes to more complicated procedures such as creating a trust. If done improperly, the probate court may set aside your documents and come to its own conclusions.

How to avoid: If you are working on your own estate plan and you’re not sure if you are doing something correctly, it’s a good indication you should speak to a professional. You should talk to an attorney if you have a large estate.

4. Not Naming an Executor

An executor is tasked with putting your estate plan into action after you pass away. For example, if your estate includes a home or real estate, the executor will have the legal authority to transfer the deed or sell the property as appropriate. If you don’t name an executor in your will, the probate court will assign someone to the role. However, that person may not be the one you want to take on the task, or they simply may not be up to the responsibility.

How to avoid: Choose someone capable and trustworthy to be your executor, discuss the situation with that person, and name them your executor. If you’re unsure who to designate or if your estate is particularly complex, having your attorney act as executor may be a good idea.

5. Communication

Depending on the nature of your estate, there may be potential for conflict between beneficiaries after you pass away, which is the last thing most people want as their legacy. The most common root cause for such conflict is when someone fails to communicate their wishes while still alive, leading to surprise, resentment, and confusion.

How to avoid: Simply speaking to people in advance (including those who might be disappointed by your plans), giving them notice, and allowing them to ask questions can clear up many problems and reduce the likelihood of conflict later.

Consult with a Professional

With your legacy on the line and no ability to correct any mistakes after you’re gone, the best choice you can make is to sit down with an estate-planning attorney. You can ask questions, identify issues that may not have occurred to you otherwise, and create a comprehensive estate plan that accomplishes everything you want.

To start the process, schedule an appointment today.

Property Dispute Litigation: What Is It and Do You Have a Case?

Posted on December 27, 2022 by Hoffman & Forde, Attorneys at Law - Residential Real Estate

Something unique about our homes provokes a deep emotional response during disputes. Not only is it the place where we live, but for most families, it is by far the largest financial investment they will make. Combine this with the complexity of modern property conveyances, and one can see why property disputes are so common.

Sometimes these disputes can be resolved, but if not, litigation may be the only way forward.

Common Types of Property Disputes

There are many types of property disputes, but some of them tend to come up over and over again.

Breach of Contract

In a real estate transaction, the most common breaches of contract occur when (1) the buyer backs out of the deal or (2) the seller back out and sells to someone else for a higher price.

In the first scenario, the fight may be over the return of the buyer’s earnest money. Also, if the seller was forced to sell to someone else at a lower price, they may try to recover the difference.

In the second situation, the buyer may seek “specific performance,” i.e., a court order for the seller to complete the original deal at the original price. Of course, judges are reluctant to give such orders, but specific performance may be appropriate if there is something unique about the property.

Failure to Disclose

If a defect affects the value of the property and is not obvious to the buyer, the seller has a duty to disclose that fact. For example, if there are termites in the walls and the seller knew or should have known about it, this is a defect that must be disclosed. On the other hand, if there’s a massive hole in the roof, the seller should notice this on their own.

Boundary Disputes

Boundary disputes arise when neighbors can’t agree on the property line. The boundary may have been poorly marked in the past, or the practical use of the property doesn’t match the legal line. These disputes are common when one party builds an improvement such as a home, shed, or fence close to the property line without surveying first.

Homeowners Associations

There is often conflict between a homeowners association’s common standards and a homeowner’s wish to use their property as they see fit. Litigation may be necessary when the HOA overreaches or the homeowner simply refuses to comply.

Litigation and Other Options

Whether the dispute is between neighbors or a buyer and seller, sometimes the parties can come to some agreement. However, property dispute litigation or mediation, may be necessary if that is not the case.

Especially in a dispute between neighbors, attempting mediation first is usually a good idea. Parties often feel satisfied with mediation results, and neighbors will continue living next to each other for many years. It also tends to be faster and cheaper.

If property dispute litigation is the best option, property owners should hire an attorney. They should also be sure to retain all documentation in their possession. After that, the best thing they can do is be patient because litigation can take a long time.

Speak to the Property Attorney

In a property dispute, your first step should be to gain an understanding of your legal position. Then, determine if you have a case against the other party or if they have a case against you to decide your next steps. Our property litigation attorneys have years of experience in resolving such disputes. We can review your situation, lay out your options, and create a plan for a fair outcome.

Contact our office to set up a consultation today.

What to Expect After Filing a Lawsuit

Posted on December 19, 2022 by Hoffman & Forde, Attorneys at Law - Civil Litigation

Everyone is familiar with a lawsuit; in fact, many people will be involved in one at some point in their life. (If you’ve ever received a notification regarding a class action, you’ve likely been a party to a lawsuit.) But unfortunately, most people don’t know what to expect after filing a lawsuit.

Here we’ll go over the significant stages of a lawsuit to provide an essential roadmap of what you can expect.

It’s important to note that the simplest answer as to what to expect after filing a lawsuit is: lots of waiting. Lawsuits proceed at a pace of months and years, not days and weeks. Patience and endurance are traits for successful litigation. That said, let’s get into it.

Initial Pleadings and Motions

A document initiates a lawsuit called a complaint, which sets out the factual allegations and legal basis for the lawsuit. The complaint is filed at the courthouse, and a copy is served to the defendant. The defendant then must file an answer in which they refute the claims made in the complaint.

It is not uncommon for the defendant to make one or more motions (i.e., formal requests for action by the court) at this point. For example, they may move to dismiss the complaint for failure to state a claim, meaning that even if all the factual allegations are true, the plaintiff has no legal remedy.

Discovery

Assuming the case is not dismissed at the outset, the parties will proceed to discovery. Discovery is the process by which the parties request information from each other. This may take many forms, but some of the most common discovery mechanisms are document requests, interrogatories (lists of questions for the other party to answer), and depositions.

For clients, depositions are the discovery procedure in which they are most likely to be directly involved. A deposition is similar to courtroom testimony in that a witness answers questions under oath, but they are also a little different in three ways:

They do not occur in a courtroom but are usually conducted in a conference room.
Only the opposing counsel will be asking questions.
They last much longer, often for hours or even days.

Summary Judgment

After both parties have completed discovery, one or both of them will often file a motion for summary judgment. Summary judgment is appropriate when there is no real question as to the facts of the case so that the judge can decide the outcome as a matter of law. If the judge denies the motion for summary judgment, the case will proceed to trial.

Trial

A trial is the stage of lawsuits that people are most familiar with, and have several distinct components:

Jury selection – From the larger jury pool, each party tries to retain jurors they think will be favorable and reject jurors they think will be unfavorable.
Opening statements – Each party has a chance to provide the jury with a preview of the trial.
Presentation of evidence – The plaintiff typically presents their case through documents, witness testimony, and other evidence. The defendant then presents their evidence. In some cases, the plaintiff and defendant may provide further rebuttal evidence in response.
Closing statements – The attorneys summarize the evidence and make their final case about why the jury should decide for them.
Deliberation – The jury retires to consider all the evidence presented to them and decide on the outcome

Appeals

Sometimes the trial is the end of the matter, but sometimes one or both parties will appeal to a higher court. They may seek to overturn decisions by the trial judge or the jury. Appeals courts have busy schedules, and this process may take many months.

Talk to an Attorney about Your Case

A lawsuit is a long and arduous process that no one should attempt without a lawyer. Speaking to an experienced attorney can help you better understand the process and your prospects for prevailing in court.

If you are involved in a lawsuit, contact our office today to learn how we can help you.

Why You Should Hire an Attorney for Your Business

Posted on November 28, 2022 by Hoffman & Forde, Attorneys at Law - Business Consulting

Small businesses go through many changes as they develop and grow. A company that starts out as just one person and an idea can become an organization with hundreds of employees and multiple locations. A business’ growth is invariably accompanied by greater responsibilities and—for better or worse—greater legal burdens. What’s more, creating a strong business foundation requires making smart legal decisions early on. Here’s why you should hire an attorney for your business.

Incorporation and Other Foundational Documents

The legal form of your business (e.g., a partnership, LLC, or corporation) matters and can have far-reaching effects. Therefore, choosing the right structure and drafting the foundational documents is best with the help of a business attorney.

This applies to incorporations in particular. The process of creating a corporation is more complicated than some realize and may require making fundamental changes to the way you operate. It’s also difficult to undo, so you should fully understand the advantages (such as asset protection) and disadvantages (increased tax burden, for example) before you begin.

Avoiding Lawsuits

It’s understandable that business owners might resist hiring an attorney in order to keep expenses down, but many will come to rue that decision when they become tangled up in an entirely avoidable lawsuit. You can’t be expected to know the legal ramifications of every business decision. A quick “I’d like to run something by you” conversation with your lawyer can save you untold amounts of misery.

It is also often the case that merely having a lawyer can prevent a conflict from escalating. For example, if someone threatens to sue you, either verbally or in writing, forwarding all future communications to your lawyer can have the effect that the person simply goes away.

Workplace Issues

Though this point could be filed under “avoiding lawsuits,” workplace legal issues are prominent enough to warrant a special callout. The modern workplace is highly regulated. Everything from workers’ compensation to harassment claims should be handled with care. Terminating an employee can easily backfire. Having predefined processes in place can help greatly, and a call to your lawyer when in doubt is usually a good idea.

Compliance

From health plans to personal data collection, many aspects of your business activities are regulated by state and federal law. Operating your business out of compliance can land you in hot water and perhaps imperil your business’ future. Even if there are some compliance areas that you can handle, it’s liable to drain you of your time. Handing these issues over to someone whose job it is to understand them helps ensure that it’s done right and frees you up to focus on your business.

Find Out How Our Attorneys Can Help

Every business is different. Our business specialists can help pinpoint your needs and create a customized plan for moving forward, whether it’s a one-time service or an ongoing relationship. Contact our office today to get started.

Estate Planning Checklist: What You Should Know

Posted on November 18, 2022 by Hoffman & Forde, Attorneys at Law - Estate Planning

Everyone should have an estate plan—we are have at least some possessions to pass on—yet most people will put off creating an estate plan as long as possible. It’s easy to understand why, but the fact is that while it’s never too early to make an estate plan, someday, it will be too late. If you’re reading this, the issue is already on your mind. So here’s a must-have estate planning checklist to help you get started.

1. Make an Inventory of Your Assets

The first step in any estate plan is determining what makes up your estate. Once you sit down and start making a list, you may be surprised by how many assets you have: your home, furniture, vehicles, collectibles, insurance policy, etc. So don’t worry if you can’t create a comprehensive list on the first go; think of it as a working document you can add to as new things occur.

Take special care to identify property that other people might not know. For example, cryptocurrency can easily be lost when a USB drive is tossed into the trash. Include information on where these assets are located, passwords, etc.

2. Decide Where Your Property Should Go

Once you know what your estate consists of, think about who you’d like to receive that property after you’re gone. For some people, it is simple; they want their surviving spouse to be their sole beneficiary or have the estate liquidated and divided equally among their children. Others may wish for a specific property to go to certain people or to give money to a charity.

It would also be beneficial to start thinking about how you want to transfer the property or plan for specific scenarios at this stage. For example, if you have minor children, consider what will happen if you die before or after they reach adulthood. Or perhaps your spouse is not the biological parent of your children, and you want them to have continued use of your home during their lifetime and then pass it to your children.

3. Consider What Happens If You’re Incapacitated

If you are incapacitated, someone will likely need to make decisions on your behalf. For example, if you are severely injured in a car accident, someone may have to make financial decisions for you or even decide whether to continue life support. Thinking about these scenarios in advance can relieve the burden on your loved ones and ensure your wishes are respected.

4. Draft the Documents

After having defined your estate and decided what to do with it, it’s time to create the necessary documents. A wide variety of legal instruments are available to accomplish virtually any estate planning goal. For some, this may consist only of a simple will and perhaps a medical directive. Others may require more complicated measures, such as setting up a trust. You may already have some assets, such as insurance policies or retirement plans with named beneficiaries; verify that those beneficiaries match your current wishes.

At this stage you should also consider who you would like to be appointed as executor of your estate. This person will have a lot of responsibility—e.g., selling your property to distribute the proceeds—so choose someone you trust who is up to the task. A judge will decide who to appoint if you don’t name an executor.

5. Review Your Plan Regularly

An estate plan created when you were 30 years old may not be sufficient when you are 50. Periodically revisit your estate plan to see if your inventory of assets is up to date or if you need to change your beneficiaries. This is especially important after significant life changes, such as divorce.

Before You Begin, Speak to an Attorney

Estate planning is about peace of mind. You want to know that your loved ones are taken care of and that your property goes where it should. However, doing it on your own presents risks because if the documents are not prepared correctly, they may be challenged in court. Also, you may miss out on simple ways to minimize your estate’s tax liability.

Talking to one of our experienced estate attorneys will simplify the entire process and ease your mind. We can help you evaluate your estate and create a comprehensive plan that covers your needs. Contact our office to set up an appointment.