ESTATE PLANNING IN THE STATE OF INDIANA
The six steps to create an estate plan in Indiana
Choose a healthcare agent. This person will make medical decisions if you cannot make them yourself.
Choose a financial agent. This person will manage your money if you cannot do so yourself.
Make a list of all your assets. This includes your real estate, financial holdings, bank accounts, and personal property.
Choose your beneficiaries. These are the people who will inherit your property after you die.
Decide how to transfer your estate. You can do this with a will or a living trust.
Keep your estate planning documents safe. Give copies to your healthcare agent, financial agent, and beneficiaries.
Here is a more detailed explanation of each step:
1. Choose a healthcare agent
Your healthcare agent will make medical decisions for you if you cannot make them yourself. This could be because you are unconscious or because you have a mental disability. Choose someone you trust to make decisions in your best interests.
2. Choose a financial agent
Your financial agent will manage your money if you are unable to do so yourself. This could be because you are incapacitated or because you have moved to a different state or country. Choose someone who is responsible and knows how to manage money.
3. Make a list of all your assets
This includes your real estate, financial holdings, bank accounts, and personal property. Making a list will help you decide how to divide your assets among your beneficiaries.
4. Choose your beneficiaries
These are the people who will inherit your property after you die. You can choose any number of beneficiaries and divide your property among them in any way you like.
5. Decide how to transfer your estate
Two main ways to transfer your estate are with a will or a living trust.
A will is a legal document that states how you want your property to be distributed after you die. Wills must be signed by two witnesses.
A living trust is a legal document that transfers your property to a trust during your lifetime. The trust can be managed by you or by someone else. Living trusts do not have to go through probate, which can save your beneficiaries time and money.
6. Keep your estate planning documents safe
Give copies of your estate planning documents to your healthcare agent, financial agent, and beneficiaries. This will make sure that they know what you want in the event of your incapacity or death.
Schedule a free consultation with an Indiana Estate Planning Attorney in two easy steps.
Step 1: Complete the form.
Step 2: Someone will call or email you to help schedule your appointment.
An estate plan is a collection of documents that specify how you want your money and other assets distributed, making it easier for your loved ones to handle your affairs during a time of grief.
An Indiana estate plan outlines the management and distribution of your assets after their death or incapacity. This plan typically includes a variety of legal documents, such as wills, trusts, power of attorney, and beneficiary designations to accommodate specific needs and preferences. In addition to asset transfer, an estate plan also addresses essential aspects like guardianship for minor children, advanced healthcare directives, and charitable giving. By creating a comprehensive estate plan, you can ensure the proper execution of your wishes.
A well-crafted estate plan can offer guidance and support to loved ones during difficult times, easing the stress and complexities that often accompany the settlement of an estate. By addressing the unique needs and circumstances of each individual, it provides a clear roadmap for the management and distribution of assets. A comprehensive estate plan can help to safeguard one's legacy and ensure that their wishes are carried out effectively and efficiently.
Why is an estate plan essential for everyone?
An estate plan is not only important upon your death, but it’s crucial for your family if you become injured or ill, requiring assistance to make medical and/or financial decisions on your own.
Without these documents, your family may incur significant legal fees, stress, and potential disagreements while trying to meet your needs and obtain a guardianship appointment. At a minimum, everyone in the state of Indiana should have a Last Will and Testament, Living Will and Power of Attorney.
In preparing each of these documents, you will name the person(s) you want to be charged with each responsibility.
Summary of critical estate planning documents
Last Will and Testament
This is what you traditionally think of when you hear the word “Will.” This document directs how your money and property, or “estate,” will be divided and handled after you die. In this document, you will also appoint an administrator or executor.
This person is responsible for carrying out your wishes and controlling your estate until it can be distributed to those persons or organizations named in your will.
Trust
A Trust can be utilized during your lifetime or after death, depending on your intentions and how the trust is created and funded. Most often, a trust is created within the Last Will and Testament to provide for the future care and education of minor children or grandchildren. You can direct the proceeds of your estate to be held in trust, which is controlled by a Trustee or your choosing, who acts as a gatekeeper. The Trustee is limited and bound by the terms of the Trust, which you will establish when preparing the Trust documents or Last Will and Testament.
Powers of Attorney and Living Will
The following three documents are utilized while you are living if you become incapacitated by illness or injury. They become void and the powers terminate upon your death.
Healthcare Power of Attorney – designates the person who will make healthcare decisions for you if you are unable to make the decisions yourself.
General Power of Attorney – designates the person who will make financial and property-related decisions for you if you are unable to do so. This person will have the responsibility of ensuring your finances are in order, obligations are paid and assets are protected during this period of incapacity.
Living Will – directs your Healthcare Power of Attorney how to handle healthcare decisions if you are unable to perform life-sustaining functions and will persist in a vegetative state for the remainder of your life.
Estate planning, Frequently Asks Questions.
Q: I don’t have much, why do I even need an estate plan?
A: Estate planning deals with much more than just your financial assets. It also identifies the person(s) who will make medical or financial decisions for you if you become injured or sick and cannot make these decisions for yourself.
Q: I’m married. Won’t my spouse make my medical and financial decisions?
A: Not necessarily. If anyone objects to your spouse’s decisions, then the Court may need to get involved. This is also a scenario in which a doctor could decide on your behalf because Power of Attorney has not been designated. Without a Power of Attorney, banks and other financial institutions will not allow your spouse to make changes to your account or assets, including handling your bills or depositing checks. Also, your spouse could become sick or injured at the same time and would then not be able to assist with your affairs at all. During your estate planning, you will identify an alternate in the event your spouse is not available.
Q: Can’t we just get our documents order after something happens to me?
A: No. A Power of Attorney can only be designated by you while you are in a competent state of mind. If an accident, injury or illness impacts your mental cognition your family or loved ones will need to seek a guardianship from the Court, which is a much more expensive and time-consuming process.
Q: I am married, won’t my money just go to my spouse if I die?
A: If you die “intestate,” meaning without a will, your assets will be divided according to the laws of the state where you reside. In Indiana this could mean that your children get 50% of your assets and your spouse receives 50%. Or, if you and your spouse die within a short period of time of one another, your assets may first pass to your spouse and then on to your spouse’s family, leaving your family without any inheritance from you. If you have young children, they might receive a large sum of money outright without the tools or maturity to manage it. If they are under eighteen (18), their guardian will manage those funds for them. If you are not in a current relationship with the children’s guardian, you may not want the assets in his/her hands. Creating a will is important to protect your loved ones from an unintended result and allows your executor to know that he or she is carrying out your wishes.
