What to expect when estate planning

Clients often admit that they procrastinated before engaging me, largely because they didn't know what estate planning entailed. Though the process involves some work, a law office that focuses on estate planning matters can walk you through it so that you develop a comfortable understanding of what you are getting and why.

When developing an estate plan, you're planning for the management of your finances during life, and for the eventual transfer of all that you own. When considering a trust-based plan, you and your attorney need to look at all of your assets to determine how they fit into the plan. More importantly, you'll need to look at loved ones and professional contacts to determine who warrants your trust in managing the biggest transaction of your life. Then, you need to talk about your beneficiaries. Whether it's your kids or your favorite charities, how they should receive your assets is all part of the discussion.

If your estate is more complicated, your attorney may want to work directly with your financial adviser or your accountant, and he or she may become one of your long-term advisers. The good news is that the more issues or complications you have without a plan, the more value you'll receive from obtaining one.

What about the cost? In estate planning, you get what you pay for. Basic power-of-attorney documents can cost several hundred dollars, and an estate plan for someone with less than $1 million in assets and no major social issues might run in the $2,000 to $3,000 range. An estate plan for someone with more than $5 million in assets could run into the five- or even six-digit range, depending on the complexity of the facts and the client's willingness to engage in sophisticated strategies.

Though you can purchase lower-priced options online and paralegals can complete forms, neither is authorized to give legal advice. Some attorneys will put together a lower-priced simple will or trust, usually a one-size-fits-all package. One estate planning attorney I know regularly tells clients that the documents are free; he charges only for the counseling.

No matter what your assets are, you need a plan that you can understand and that works for you now and in the future, for both you and your heirs.

• Darcy Houghton is a resident of Carson City and accepts cases in estate planning and business law. She may be reached at 775-882-1777, or visit her website at www.hou2plan.com