Estate Planning Attorney
in Charleston, South Carolina
Estate planning is the process of deciding how your property will be used for your benefit and the benefit of your loved ones during your life and who receives your property after your death. Estate planning typically has two components. First, you must decide who will make your financial and healthcare decisions if you become incapacitated. Second, you must decide what happens to your property after your death. Estate planning can be simple or complex depending on your unique needs and wishes.
What Is Your Estate?
Your estate consists of everything that you own. Your estate includes your bank accounts, real estate, stocks and bonds, life insurance, retirement, property that you own with another person, vehicles, boats, guns, jewelry, art collections, antique coins, and all the rest of the “stuff” you own.
Why Do You Need an Estate Plan?
God willing you will go through your entire life without a debilitating medical condition or being in a serious accident. But no one escapes death. If your death occurred unexpectedly, would your loved ones be okay? Who would make financial and medical decisions if you were no longer able? Who would raise your young child? Take over your business? The estate planning process seeks to answer those questions.
You may already have some ideas in mind about how you want things to be handled. Maybe you want your grandmother's engagement ring to go to your oldest daughter. Perhaps you want your youngest son to inherit the cherry red convertible Mustang he helped you restore. Maybe Papaw's hunting rifle should go to your middle son who was the only child who ever hunted with him. Estate planning distributes your property to whom you want, how you want, and the way you want. Estate planning puts you in control.
Putting your affairs in order before your incapacity or death can give you a sense of peace. It also makes a period of incapacity and your death less burdensome on your loved ones because you have made your wishes known.
What Happens if You Do Not Have an Estate Plan?
No one knows what the future will hold. On any given day, another person's negligence can cause you to suffer a catastrophic injury or even death. Treatment for a serious disease or the natural aging process can render you unable to handle your own financial and healthcare decisions.
Incapacity
If you become incapacitated without the proper estate planning documents in place, no one can legally act on your behalf. Your spouse or life partner, one of your children, or someone you do not even know, including a representative of the state, may have to ask the probate court to appoint a guardian and conservator to make decisions for you and handle your finances. The guardian and conservator appointed by the probate court may not be the person you would have chosen. Having an estate plan in place allows you the freedom to choose who you want to act on your behalf should you become incapacitated.
Intestate Succession
If you die without a will, then you die intestate. Under the law of intestate succession, the great State of South Carolina will decide who receives your “stuff”. Here are some consequences of dying intestate:
You may be estranged but not divorced from your spouse. He/she could inherit all or part of your estate. You may want to disinherit one of your children. Without a will disinheriting the child, that child will inherit your property under intestate succession laws. You may want to protect an inheritance from a child struggling with mental health issues, addiction, or compulsive spending. Or maybe your child is married to someone with those issues. Again, without a will- or trust-based estate plan, that child will inherit your property under the laws of intestate succession without any safeguards.
Guardian for Minor Children
If you die without a will, which typically names a guardian for your minor children, a family court judge will decide who will be the guardian for your minor children using the "best interests of the child" standard. The person the judge chooses may not be the person that you want to raise your kids. The court will decide who will handle any money your minor child inherits from your estate. Again, the person the court chooses may not be the person that you want handling your child's money. Estate planning is critically important for parents of minor children.
These are just a few of the issues that are difficult to think about but potentially have long-term consequences for your loved ones. That is why estate planning is so important.
What Is Included in An Estate Plan?
Estate plans can include several types of legal documents. A personal injury, the effects of treatment for a debilitating disease, or the natural aging process can seriously compromise your ability to make your own decisions.
To address periods of incapacity, estate plans should include a General Durable Power of Attorney and advance healthcare directives including a Health Care Power of Attorney, HIPAA Authorization form, and a Living Will. A Power of Attorney allows someone you trust, your Agent, to make financial decisions for you while you cannot make those decisions. A Power of Attorney can be limited or specific and immediately effective or only spring into effect when you become incapacitated. A Health Care Power of Attorney allows someone you trust to make medical decisions for you. A HIPAA Authorization form allows your chosen people to receive a copy of your medical records and have discussions about your care with your healthcare providers. A Living Will allows you to decide how you want to die if you have a terminal condition or are in a permanent state of unconsciousness. All of these documents are included with will-, trust- or wealth preservation-based estate plans.
Trusts can allow you to plan for incapacity or special needs. Trusts can allow you to plan for your spouse or life partner, your children, or other beneficiaries during incapacity and after death. There are many types of trusts and it is important to speak to an attorney regarding the pros and cons of different types of trusts. I can help you decide which trust is right for you.
Finally, wills provide for the distribution of your property after your death through the probate process. A will also allows you to name a guardian to care for your minor children. The probate process can be expensive, lengthy, and difficult. Proper estate planning can make the probate process easier. Wills can be used in conjunction with trusts to dispose of your property according to your wishes.
I Am Here To Help
Contact Mangus Law Firm, and I will help guide you through the estate planning process. I provide estate planning services to individuals, parents, newly married couples, blended families, second+ marriages, and LGBTQ families. If you live in Berkeley, Charleston, or Dorchester counties and have more questions about estate planning, request a consultation with me using the form below or call or email me. I am looking forward to talking with you about your estate planning needs.