Securing your legacy and providing for your loved ones is one of the most important steps you can take. At Foust & Foust, PLLC, we’re here to help you do just that.
Estate planning is more than just managing your assets; this process ensures that your wishes are followed and your family is cared for after you’re gone.
We’d love to be of assistance whether you’re creating a will, setting up a trust, or planning for incapacity. Whatever the case, we’re here to guide you through every decision with care and clarity.
Understanding Estate Planning in Tennessee
Estate planning is the process of arranging for the management and distribution of your assets after your death.
It involves creating a comprehensive plan that covers everything from how your property will be divided to who will make decisions for you if you become incapacitated. It can help minimize taxes, avoid probate, and ensure your family’s well-being.
Key Estate Planning Documents in Tennessee
When creating your estate plan, several key documents can help protect your interests and your family’s future:
Wills
A will is a legal document that outlines how your assets will be distributed after your death. In Tennessee, for a will to be valid, you must be at least 18 years old and of sound mind, and you must sign your will in the presence of at least two witnesses. Through a will, you can also name guardians for your minor children so you know they’ll be cared for by someone you trust.
Trusts
Trusts are another important estate planning tool that can offer flexibility and privacy. There are different types of trusts, such as revocable and irrevocable trusts. Revocable trusts allow you to retain control over your assets during your lifetime. Irrevocable trusts can help protect assets from creditors and taxes. Trusts can also help avoid probate and ensure that your beneficiaries receive their inheritance more quickly.
Powers of Attorney
A power of attorney allows you to appoint someone to make decisions for you if you become unable to do so.
In Tennessee, there are two main types of powers of attorney: durable power of attorney (for financial decisions) and healthcare power of attorney (for medical decisions). By appointing someone you trust, you can ensure that your affairs are handled the way you want.
Advance Directives
Advance directives, such as living wills, let you express your preferences for medical treatment in case you can’t communicate them. Above all, it is important to make sure your healthcare decisions are respected. Plus, it can prevent your family from having to make difficult decisions during stressful times.
Why Estate Planning Matters in Tennessee
There are a number of benefits to organizing an estate plan. Here are the most notable advantages that you can obtain when you sit down to go over things.
Avoiding Probate
Probate is the court process for distributing a deceased person’s assets. Without a proper estate plan, your estate will go through probate, which can be a long and costly process for your family.
Fortunately, in Tennessee, small estates valued under $50,000 may qualify for a simplified probate process, but larger estates will still need to go through the full probate process. A well-crafted estate plan can cause delays or legal expenses.
Minimizing Taxes
Tennessee does not have its own inheritance or estate tax, but federal estate taxes can still apply to larger estates. Estate planning strategies, like setting up trusts and gifting assets during your lifetime, can help minimize the impact of taxes on your estate.
Protecting Your Family Members
Estate planning provides clear instructions on how your assets should be divided, who should care for your children, and how any special needs family members should be supported. This helps prevent disputes and guarantees that everyone is taken care of.
Providing for Minor Children and the Elderly
Naming guardians for your minor children is one of the most important decisions in your estate plan. You can also use trusts or other financial planning tools to ensure that funds are available for their education and care.
Additionally, estate planning allows you to plan for the care of elderly parents or relatives who may rely on you for support.
Planning for Incapacity
None of us like to think about becoming incapacitated, but it’s a reality that we all must face. Estate planning tools, such as powers of attorney and advanced healthcare directives, allow you to appoint someone to make financial and medical decisions for you if you can’t communicate your wishes. This can prevent confusion and ensure that your affairs are handled the way you would want.
Additional Considerations in Tennessee Estate Planning
Estate planning can be complex, with many details to consider, particularly when it comes to financial matters.
Trust Registration
Tennessee allows for the registration of trusts with the state. While not required, registering your trust can help ensure that Tennessee maintains jurisdiction over it. This aspect can be helpful in the administration of the trust and in resolving any legal questions that may arise.
Gifting and Education Savings
Part of a comprehensive estate plan may include strategies for gifting assets during your lifetime to reduce the size of your taxable estate.
Education savings accounts, like Tennessee’s TNStars program, can help you set aside money for your children’s or grandchildren’s education.
Regular Reviews and Updates
Estate planning isn’t a “set it and forget it” task. Life changes, such as marriage, divorce, the birth of a child, or significant changes in financial circumstances, may require you to update your estate plan.
Also, changes in state or federal laws could affect how your estate is handled, so it’s a good idea to review your plan every few years.
Frequently Asked Questions
Here are some common questions people have about estate plans and the criteria surrounding them:
What Are the Witness Requirements for a Will in Tennessee?
In Tennessee, for a will to be legally valid, it must be signed by the person creating the will (the testator) and witnessed by at least two individuals who are not beneficiaries under the will. The witnesses must be present when the will is signed.
How Often Should I Update My Estate Plan?
It’s a good idea to review your estate plan every few years or after any major life event, such as marriage, divorce, the birth of a child, or a significant change in your financial situation. Regular updates help ensure that your plan continues to reflect your current wishes.
What’s the Difference Between a Will and a Revocable Trust?
A will takes effect after you pass away and must go through probate, while a revocable trust allows you to manage your assets during your lifetime and transfer them to your beneficiaries without going through probate. A revocable trust offers more privacy and flexibility than a will but may require more upfront planning.
How Does Tennessee’s Probate Process Compare to Other States?
Tennessee’s probate process is fairly typical compared to other states, though there are some advantages, such as the simplified process for small estates valued under $50,000.
How Foust & Foust Can Help
At Foust & Foust, we believe that estate planning is a deeply personal process, and we take a client-centered approach to create personalized estate plans that reflect your values and goals.
Our experienced attorneys are here to guide you through every aspect of estate planning, probate, and trust administration. We pride ourselves on providing clear and compassionate support, ensuring that you understand every step of the process.Don’t leave your family’s future to chance. Contact Foust & Foust, PLLC today at (865)-203-4041 to schedule a consultation and take the first step in securing your legacy.