Confused about Estate Planning and don’t know where to start? Here are a few Frequently Asked Questions that may help:

 

 

Do I need an estate plan?

Yes, if you have any assets and care about who receives them after your passing, as well as who will oversee their distribution, you need an estate plan.

What is probate?

Probate is the court process required to re-title the assets of a deceased person, such as a home or a car.

Why should I avoid probate?

Probate is a lengthy process (a minimum of 6 months in Rhode Island), expensive (involves court fees, attorney fees, and fiduciary fees), and it is public (documents filed with the probate court are accessible to anyone).

 

Should I have a will?

Yes, regardless of your circumstances, having a will is essential to ensure your assets are distributed according to your wishes.

What is the difference between a will and a trust?

A will simply names the people who will receive your property after you die, and names the person or people who will be in charge of distributing your property. Even if you have a will, your estate is still subject to the probate process.

A trust holds title to your property during your lifetime, and also dictates who will receive your property, and who will be in charge of that distribution, after you die. Because your property is already titled to the trust, there is no need for probate.

What is a Power of Attorney (POA)?

A Power of Attorney is a document that grants another person (Agent or Attorney in Fact) authority to manage your assets or make healthcare decisions on your behalf if you are unable to do so.

What is the spouse’s elective share?

Under state law, your surviving spouse is entitled to a share of your estate, even if you explicitly leave nothing to them in your will.

Can I do an estate plan if I am single and have no children?

Yes, if you are unmarried and childless, you can create a will or trust; otherwise, your estate will pass to your heirs at law, such as parents, siblings, or other relatives.

How much does estate planning cost?

The cost varies based on your situation. Consider the value of your estate and your peace of mind when determining your budget for an estate plan.

Lawyers may charge an hourly fee to draft your estate plan, or they may charge a flat fee. Other lawyers may charge a percentage based on the gross value of your estate (1% – 4%). The average cost of a will-based estate plan is $2,000. The average cost of a trust-based estate plan is $5,500. Plans that require Medicaid/ long term care or Asset Protection planning are considerably more expensive.

What is long-term care planning?

Long-term care, particularly in nursing homes, can be expensive (thin $10,000 per month or more). If you have substantial assets, you might need to plan ahead to preserve them for your spouse or children in the event of long-term care needs.

What is a Special Needs Trust?

A Special Needs Trust is created for a person with a disability to hold their assets and maintain government benefits like SSI and Medicaid. It can be established by a third party or the disabled person using their assets.

Does a Living Trust provide Medicaid protection for my home?

Only if the Living Trust is Irrevocable and contains specific provisions relating to Medicaid protections.

Do I need an attorney to do my estate plan?

Yes. There are many DIY options that will give you estate planning documents, but they will not give you any legal advice. Having an experienced estate planning attorney create your plan is the only way to ensure it meets your needs and expectations.

What should I expect if I hire JMS Law to handle my estate planning needs?

When you choose JMS Law:

• We will listen to your story and concerns.
• We will address your questions and concerns thoroughly.
• We will create an estate plan tailored to your current needs and flexible enough to meet future requirements.
• We will maintain an ongoing relationship with you to ensure your plan remains up-to-date and aligned with your wishes.

 

For any other inquiries or to schedule a consultation, please contact us. Your peace of mind is our priority.