Estate Planning: Know Your Client's Assets

When an estate planning attorney meets with a client, a crucial first step in the relationship is to determine the individual's assets and the type of ownership that the client has to the assets. For example, a lawyer should find out if the person owns real property as a joint tenant with right of survivorship or if the client has a joint bank account with another person. In addition, the attorney will want to find out if the client is a settlor of a revocable living trust. These examples demonstrate situations where a potentially large portion of a client's assets (or former assets) pass outside of his or his will upon death directly to another person without the need of acquiring the approval or supervision of the Probate Court. If a client knows that his or her loved ones will have access to vital resources in the immediate aftermath of death, a sense of peace can come upon the person's mind. That being said, once an attorney determines that a client has non-probate assets the lawyer then has an obligation to discuss with the client the idea of including passages in the client's will that make provisions in the event that the co-owners of jointly-held assets predecease the client.

Alternatively, a client may own real or personal property on his or her own or as a tenant in common. Individuals in those scenarios certainly need to make provisions for such assets to pass to their beneficiaries upon death. These plans may include moving this property into non-probate assets or indicating in a will who will take the assets upon death. If a client is inclined to specify which relatives or friends will acquire specific items of personal property, the estate planning attorney should consider advising the client to have a reference in his or her will to a separate memorandum that spells out these details that he or she can update as life circumstances change.

Once an estate planning attorney possesses this foundational information from the client, he or she is now better positioned to prepare a last will and testament or a trust. That will be the focus of the next blog post.

Note: Attorney Bradley Sica's blog is for informational purposes only and is not designed to establish an attorney-client relationship. Because every person has unique circumstances in life, an individual should make an appointment to consult with an attorney to ensure that a specific course of action in estate planning is advisable. If you live in Maine and would like to schedule an appointment with Attorney Sica (subject to a conflict check), please visit www.bradsicalaw.com.