By Ashley Claire Simpson
Imagine all the things you’ve spent years working to secure: your savings accounts, your home, maybe even a vintage car. Then, think about what will happen to all of your prized possessions, and even the financial security you’ve worked hard to obtain for your family, after you pass away.
Northern Virginia-based attorney Richard Phillips, owner of Hometown Estate Planning in Historic Manassas, explained that without a documented plan that follows a legal structure, the government becomes responsible with the distribution and handling everything you’ve worked hard for after your death. This startling scenario highlights just how important it is to have a plan in place for your assets. A good place to start is with an attorney who specializes in Estate Planning, like Phillips.
“I began my firm a few years ago, and I provide specialized inheritance and incapacity planning,” Phillips said. “What that means is, I’m helping people make sure they have the right documents and processes in place in the event that they ever became incapacitated in their lifetime, and unable to make certain decisions. I also help people plan for when they pass away.”
Phillips, who has been in practice for nearly 20 years, said he decided on this area of legal practice because it can make such a positive impact on families’ lives.
“I started my own practice because of a desire to have the law degree be a positive impact in peoples’ lives,” he said. “For the first dozen years of my career, I was a trial attorney. I had always done Estate planning, but it was mostly secondary. I was mostly doing trial law and litigation, and while there are some satisfying aspects to that, you are dealing with people for which things have gone wrong. You’re in an adversarial environment. What I do now is help families efficiently pass their wealth onto their kids and grandkids. With Estate Planning, you will have an estate plan even written for you if you choose not to do one for yourself. But, in that case, the government is deciding what’s right for you and your family.”
It’s common for people to delay the Estate Planning process, because often times, people think that it only makes sense if you’re older and you have a lot of wealth. Contrary to that belief, though, Phillips said that people should start to seek out a plan as soon as they start having kids, or when they secure a significant asset.
“Do it as soon as possible so you can avoid unneeded costs and the inevitable delays that happen if you don’t do it ahead of time,” Phillips advised. “When you purchase a house and have children, you need to start putting a basic plan in place. You can always amend your plan as you family’s circumstances or your financial circumstances change. If you have kids and a significant asset, then it’s a good idea to have at least a simple plan in place.”
It’s important to have the assistance of an attorney in drafting these plans because they must follow a certain structure in order to be valid.
“With an attorney, you have someone who specializes in this area of the law, who knows it,” he said. “I’m not just drafting documents for people. I’m guiding them through the process. You don’t need an attorney to draft your own will, but your will needs to follow legal formalities in order for it to be acceptable.”
He added that there are special trusts, as well as legal stipulations, so that the loved ones who do inherit your assets handle them properly, and exactly as you intend. Whether your child has special needs, or even errs on the side of financial irresponsibility, there are ways to protect them when an inheritance comes their way.
Attorneys like Phillips can help make this type of planning as seamless as possible. While the thought of planning for your family’s financial security after your own death can be overwhelming, having a plan in place can help you make certain guarantees.
“Like I said, this is an area where law can have a very positive and beneficial impact for you and your loved ones,” he said. “The key is, you have to choose to take that step. A little over half the population never does. Over half of us will pass away without doing a proper estate plan ahead of time.”
