Protect Your Loved Ones With A Comprehensive Estate Plan

A common misconception about estate planning is that it is only for the elderly or for extremely wealthy individuals. The truth is, if you have people in your life who you love, then you need an estate plan.

At Janssen Law, PLC, in Des Moines, lawyer Dallas J. Janssen helps people from all walks of life develop a comprehensive estate plan that allows them to protect their assets and pass them on to loved ones in the manner they desire. Dallas has more than three decades of experience assisting clients throughout Iowa with their estate planning needs. He works with high-asset families who require complex strategies, as well as those with more modest assets who merely want the peace of mind that comes with a comprehensive estate plan in place.

Comprehensive Estate Plans: What Should They Include?

An estate plan is comprised of multiple documents that set out your wishes regarding your assets, medical care, end-of-life decisions and other aspects of planning for the future. Every estate plan should be tailored to fit the client’s unique situation. At the very least, you should have a will that provides instructions on how your personal assets should be distributed upon your death, as well as the power of attorney designees for financial matters and health care in case you become incapacitated and cannot make these decisions yourself.

Dallas can help you put an estate plan in place that is carefully thought-out and well-crafted to address your wishes and goals. He helps clients understand their options by first painting a clear picture of their situation, from determining what assets they own to financial planning for the long term. He drafts all kinds of estate planning documents, including the following:

• Wills
• Guardianship designations for minor children
• Financial powers of attorney
• Irrevocable trusts
• Revocable trusts
• Income assignment trusts (Miller Trusts)
• Health care powers of attorney
• Living wills

When you work with Dallas, you can expect clear guidance on which tools are appropriate for your situation and what they accomplish.

Why It’s A Good Idea To Regularly Review Your Estate Plan

An estate plan allows you to control what happens to your property if you die or become incapacitated. Periodically reviewing your estate plan will alert you to any changes that need to be addressed. It is important to review your estate plan:

• Immediately after a major life event
• Annually
• Thorough review every five years

There will be times when you’ll need to make changes to your plan to ensure it still meets all of your goals. For example, an executor, a trustee or a guardian may have died or changed his or her mind about serving in that capacity, requiring you to name someone else.

Examples of events that should trigger a periodic review include:

• A change in marital status
• Addition to your family through birth, adoption or marriage (stepchildren)
• Death or incapacitation of a spouse or family member
• Spouse, parents or another family member has become dependent on you
• Substantial change in the value of your assets or your plans for their use
• Receipt of a sizable inheritance or gift
• Change in income level or income requirement
• Retirement
• Plans to change any part of your will or estate plan

Dallas can help you update an existing estate plan to reflect your current situation and goals, no matter where that estate plan was originally drafted.

What To Consider When Updating Your Estate Plan

Updating an estate plan doesn’t have to be overwhelming. There are ways to streamline the process. Here are some examples of things to review in your estate plan:

• Who are your family members and friends? How do you feel about them?
• Does your will reflect your current goals and wishes? Does your choice of an executor or a guardian for your minor children remain appropriate?
• In the event that you become incapacitated, do you have a living will, durable power of attorney for health care or “do not resuscitate” order to manage medical decisions?
• What property do you own and how is it titled?
• Have you reviewed the beneficiary designations for your retirement plans and life insurance policies?
• Do you have or need a trust, living will or testamentary?
• Do you plan to make any lifetime gifts to family members or friends?
• Do you have plans for charitable gifts or bequests?
• If you own or co-own a business, have provisions been made to transfer your business interest? Is there a buy-sell agreement with adequate funding?
• Would lifetime gifts be appropriate?
• Do you own sufficient life insurance to meet your needs at death?

Dallas can walk you through these considerations and inform you on how they will shape your updated estate plan.

Answering Your Frequently Asked Questions About Estate Plans

It is understandable to have a lot of questions when creating or reviewing an estate plan. Here, Dallas puts together some answers to questions he is commonly asked. But each case and client is different. For answers to your specific questions, he invites you to take advantage of his firm’s free initial consultation. It’s a great opportunity to ask questions that are specific to your scenario.

What does a will generally include?

A will helps to prevent conflicts between family members. A will also has to meet certain requirements to be legally valid. The fundamental aspects of a will include:

• Identification of family: One of the most important things is to clearly outline the members of your family who will be beneficiaries.
• List of property: This does not have to be an exhaustive list of your assets, as you can make general statements about who should receive property. However, it is helpful to list items that you wish specific beneficiaries to inherit.
• Bequests: General or specific bequests are gifts from your estate. They can include cash or a specific property, such as your home.
• Executor: It is important to determine who will execute the wishes in your will and distribute property.
• Guardianships: If you have any minor children, your will should also establish a legal guardian who will be responsible for your children if you are unable to care for them.

Everyone has different family dynamics and unique wealth portfolios. To know and understand what your will should include, it is important to consult an experienced wills and trusts attorney.

How are wills and trusts different?

Both wills and trusts legally transfer property to beneficiaries after death. It is a common misconception that trusts are tools used mainly by wealthy families – anyone can establish a trust.

The main differences between trusts and wills include:

• Number: Where you can only have one will at a time, you can make as many trusts as you wish. This is because trusts can cover specific topics, such as who will take care of your pets.
• Time of effect: Wills go into effect after death, while trusts can go into effect whenever you decide.
• Probate: Trusts do not have to go through the probate process, but wills do.

It is still important to create a will, but trusts can provide additional support for your whole estate plan.

How do estate taxes work?

The federal government collects an estate tax on property passed on after death, but only if the estate is valued over a certain amount. In 2022, the exemption amount is $12.06 million. This exemption will sunset in 2025. On Jan. 1, 2026, the exemption drops to $6.2 million. Iowa does not have its own estate tax, though it does have an inheritance tax.

Generally, the inheritance tax applies to estates valued at over $25,000 or if parts of the estate are left to larger organizations. Unlike estate taxes, an inheritance tax does not apply to the entire estate but only to what a beneficiary receives. That means that the beneficiary is responsible for paying the tax.

The inheritance tax amount is different for every individual, so it is helpful to consult an experienced lawyer who can help you understand your situation.

What happens if I don’t have an estate plan?

If you pass away without making a will, then the state will take over to distribute your assets according to the intestate succession laws. In other words, there are specific laws that dictate how assets and wealth should be divided if you die without a will.

Even if you die without a will, there are several assets that won’t be impacted by intestate succession, including:

• Property that is designated and defined through a trust
• Retirement pensions will go to the named beneficiary on the account
• Jointly owned property will transfer to the joint owner

According to these laws, most of your property will still go to your closest family members in intestate succession. However, creating a will allows you to have control over what those family members receive.

What does the probate court in Iowa do?

In the state of Iowa, the probate court will oversee the administration of a person’s estate. The probate court is responsible for:

• Validating a will and overseeing the distribution of assets as the will directs
• Directing the payment of debts and finalizing creditors’ claims
• Transferring the title of real estate
• Distributes funds into bank accounts held only in the decedent’s name

The only time that a will does not have to go through probate is if its assets are less than $50,000 and you do not own property or have bank account assets that are solely in your name.

Can I avoid probate in Iowa if I have a will?

Not usually. The only way to avoid probate in Iowa is if your estate is worth less than $50,000 and you do not hold property or have bank accounts that are solely in your name.

How long does the probate process take in Iowa?

The length of the probate process will always depend on the size of the decedent’s estate, the number of debts that have to be settled, how quickly the creditors act to resolve the debts and if there are any challenges to the decedent’s will. Most of the time, the probate process can be resolved within a year of the day the person dies.

If you have questions about a specific estate, an experienced estate planning attorney can give you a better estimate after evaluating the facts and details of your specific scenario.

Why should I consult an estate planning attorney?

Preserving your legacy and your wishes is important to you and your family. An estate plan can help you do just that, but it is essential to do it right so that it follows the law. There are many details involved in the estate planning process, and it can be difficult to know where to start.

Dallas can help you:

• Organize your finances and assets
• Draft and establish planning documents
• Avoid conflict and consequences

He can help you plan for the future so that you can focus on the present. A knowledgeable estate planning attorney who understands the nuances of applicable laws can guide you through every step of the process and reduce your stress.

Consult A Des Moines Estate Planning Attorney For Free

At Janssen Law, PLC, attorney Dallas Janssen is prepared to guide you through the entire estate planning process. When you have more questions, he welcomes the opportunity to help you find the answers. Call 844-879-2839 or contact the firm online to schedule a free consultation with him today at his Des Moines office.