Northwest Arkansas Estate Planning Attorney

Nobody likes to imagine what might happen to their loved ones after they’re gone. Who will inherit your assets? How can you spare your family the hassle of dealing with probate? If you have special needs children, who will take care of them when you pass away? Who will manage their inheritance? Who will raise your minor children?

Estate Planning Expertise At Your Disposal

If you’re struggling to find answers to questions about estate plans, our experienced estate planning attorneys at DeWitt Law Firm are here for you.

What is My Estate?

Your own estate is everything you own. It includes life insurance policies, retirement accounts, annuities, retirement plans, IRAs, checking accounts, savings accounts, furniture, clothing, and more.

The Dangers Of Not Having A Will

You may think that if you don’t have a lot of money in bank accounts, real estate, or other assets, you don’t need a will. Or maybe you’re still young and assume you’ve got plenty of time to write a will. Unfortunately, these are common misconceptions that could come back to hurt your loved ones after you’ve passed away.

If you die without making beneficiary designations through a will, your estate could get tied up in lengthy and complicated probate proceedings – and that’s something you want to avoid at all costs.

In probate, the court will use your assets to pay off debts. Anything left over gets distributed to your heirs, including children, parents, and surviving spouses. But if you haven’t designated beneficiaries, you’ll have no say over who gets what.

The court will also appoint an executor to oversee the disbursement of your estate. The executor’s job includes tracking down your heirs and distributing your assets, which is a time-consuming and stressful task. The whole process can take months or longer, during which your loved ones can’t access money they might desperately need.

When your family is dealing with the grief of your passing, they shouldn’t have to handle the hassle of probate court, too. That’s why everyone needs a will – no matter their age or financial status.

Why You Need To Set Up A Trust for Your Beneficiaries Today

With trusts, you’re in greater control of who gets your assets and when. Typically, heirs receive assets through a trust much more quickly than they would via probate court. Our estate planning services include setting up trusts to distribute your assets just days or weeks following your death.

When it comes to setting up a trust, you have two main options. One is a revocable trust, which you can change as long as you’re still living and able to make sound financial decisions. An irrevocable trust, on the other hand, is much stricter. You can’t change this type of trust without a court order or the approval of all beneficiaries. An estate planning attorney will help you choose a trust if you’re unsure which is best for you.

People with large estates can also use trusts as a estate tax-efficient method of wealth transfer. In some cases, your heirs won’t have to pay taxes on assets you’ve left them in a trust. That’s especially appealing in a rough economy when every penny counts. Calculating trust taxes is a complicated topic, though, which is why you need a knowledgeable estate planning attorney to help you out.

A trust keeps your estate out of probate and may also mean your beneficiaries get a larger inheritance. In Arkansas, a trust does not have to pay your creditors.

In a trust, you put property into it as the “grantor.” Then the “trustee,” who is you during your lifetime, or you and your spouse if your are a married couple, manages the property for the benefit of the beneficiaries. When you pass, then the trust becomes irrevocable and your successor trustee follows the rules you left.

Durable Power of Attorney: A Key Aspect of a Valid Estate Plan

What happens if you become ill or incapacitated and can no longer make decisions for yourself? Through our estate planning solutions, you can set up a financial power of attorney along with a healthcare power of attorney and have a loved one make decisions on your behalf. Powers of attorney give your representative authorization to manage your money and property when you’re sick, disabled, or otherwise unable to do so.

You can also appoint a medical power of attorney to make health care related decisions for you. Even if you think your loved ones know your wishes, this isn’t always true. Advance care planning ensures that your family knows exactly what to do, making things a little easier for them during what is likely a very difficult time.

Is power of attorney the same thing as guardianship? They are similar, but you can think of guardianship as stricter and more restrictive overall. The Probate judge will pick your guardian. A guardian does not have as much authority to act independently. With power of attorney, you’re still allowed to make certain choices for yourself. If you’re under someone’s guardianship, however, that person makes all decisions on your behalf.

What About Estate Tax Planning?

The amount of estate tax due is based on the value of the estate. Arkansas does not have an inheritance or estate tax. The tax exemption for federal estate tax is $12,920,000.00. For a couple, you can double that amount. That means that the majority of estates will not owe estate tax unless it is in a state with the tax. Most estates don’t even need to fill out a return for inheritance taxes and send it to the internal revenue service.