Birmingham Estate Planning Attorney
What is Estate Planning?
Estate planning in Birmingham is simply making sure your assets are taken care of the way you want, both while you're alive and after you're gone. It's like creating a roadmap for your loved ones to follow, so they know exactly what you want to happen with your things and how you want to be cared for if you get sick.
Think of it like this: if you don't have an estate plan, it's like leaving a treasure map with no clues! Your family might spend a lot of time and energy figuring things out on their own, which can be stressful during a difficult time and lead to conflict.
Who Needs an Estate Plan?
Even though you may not realize it, you already have an estate plan! It's either the 1982 Alabama Legislator's default plan, which might not reflect your wishes, or a plan you intentionally create yourself. If you don't like the state's best guess, you need to create a will-based or trust-based plan that reflects your desires for your loved ones.
What is in an Estate Plan?
An Alabama estate plan typically includes one or more of the following documents: a trust, a will, a power of attorney, and an advance directive (which may contain a living will and healthcare proxy).
What is a Trust?
A trust is a legal arrangement where a third party, called a trustee, holds assets on behalf of one or more beneficiaries. This is the technical definition, but let's break it down into simpler terms.
Imagine a trust as a big box you put your assets (house, stocks, personal property, etc.) in. You give the box (and everything inside) to someone you trust (the trustee) to manage and look after it. But the stuff in the box isn't for the trustee to keep. According to your instructions, it's meant for someone else (the beneficiary) to receive it eventually.
What is a Will?
A will is a legal document that coordinates the distribution of your assets after death. You can name beneficiaries in your will to specify who will receive your belongings, money, and property. After your death, an original copy of the will is submitted to the Probate Court (typically in the Alabama county of your residence), and the court oversees the administration of your estate. This process ensures your wishes are followed and distributes your assets accordingly, but it takes time and money.
What are the Differences Between a Trust and a Will?
The key difference between wills and trusts lies in timing. A will takes effect only after your death, while a trust can be active during your lifetime. This distinction has several significant consequences. First, a trust can help manage your assets and designate a trustee to make decisions if you become incapacitated, whereas a will has no such power. Second, a properly established trust can avoid probate, a court process for distributing your assets. Finally, because it bypasses probate, a trust generally offers more privacy than a will.
What is a Power of Attorney?
A power of attorney is a legal document that allows another person, known as your agent, to make decisions on your behalf regarding your property. This means your agent can handle matters related to your property, including your money, even if you are unable to do so yourself.
What is an Alabama Advance Directive?
An Alabama Advance Directive is a legal document that allows you to plan and communicate your wishes regarding medical treatment in case you become unable to make decisions for yourself due to illness or incapacity. It typically combines a living will and a healthcare proxy. The living will portion outlines specific instructions about the types of medical treatments you do or do not want in certain situations, such as life support. The healthcare proxy portion designates a trusted person, known as a healthcare proxy, to make medical decisions on your behalf if you are unable to do so yourself. This document ensures that your healthcare preferences are respected and followed, even if you cannot communicate them directly.