In a recent podcast episode, leading estate planning attorney Fred Haiman, founding partner at Haiman Hogue PLLC in Frisco, TX, revealed why simply having a Will as an estate plan isn't enough to protect someone's family. —
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When asked to comment, he explained to listeners, "There's a big misconception that the only thing people need when estate planning is a Will. Everyone hears in the media, time and time again, all the talk about having a Will, which is an absolute minimum necessity. But a Will doesn't do what a lot of people think it does."
One widespread misconception is that Wills are automatically effective upon a person's passing.
"Most people understand that a Will doesn't have any effectiveness during life. Your Will is not good until death. And it's not even good upon death because death is a triggering event that possibly allows the Will to become effective. Almost every Will has to go through the probate courts."
When going through probate court, there's no guarantee that the outcome will be favorable as it's up to the judge to decide whether or not a Will is accepted, according to Haiman. Probate can also be very time-consuming and costly.
When asked to elaborate, he said, "Most states like Texas require you to hire an attorney to go through the probate process. While legal fees may vary, it's not uncommon for it to be three to five thousand dollars - and that's only for simple cases that don't involve a fight."
Haiman was quick to add that there are also filing fees and court costs to take into consideration, on top of all the attorney fees.
Setting up a complete ‘Family & Money Protection Plan’ - which includes something called a Living Trust - is an excellent way to avoid putting any unnecessary strain on your family during an already stressful time.
"The ultimate aim of the 'Family & Money Protection Plan' is to do two main things: keep the courts and the government out of your life. It's a mechanism that is legal, and it allows you to privatize your life so that you can set things up during your lifetime. I always say that the only people that need to know about your 'Family & Money Protection Plan' are the people you want to know about it."
When asked about the benefits of a ‘Family & Money Protection Plan’, he said, "One of the first big benefits is something that a Will does not do at all, which is providing benefits if a person becomes incapacitated or disabled. This plan puts mechanisms in place that allows a spouse, family member, or whoever you want, the ability to pay your bills, take care of things, and take care of you."
People might think that putting together a Family & Money Protection Plan is unnecessary or doesn't apply to them, however Haiman has a different opinion.
"Putting together a 'Family & Money Protection Plan' is the ultimate way of showing love to your family. It makes sure that they are all set up if you become incapacitated or when you're no longer here. They don't have to go through the problems of the legal system, potential legal disputes, and creditors trying to take away assets. The 'Family & Money Protection Plan' protects against all of that," he said.
Name: Fred Haiman
Email: Send Email
Organization: Haiman Hogue, PLLC
Address: 2595 Dallas Parkway, Ste. 100, Frisco, Texas 75034
Phone: 469- 893-5337
Source URL: http://RecommendedExperts.biz
Release ID: 88991332