The Essentials of Estate Planning: What Every Chattanooga Resident Needs to Know

“Protecting Your Legacy: The Basics of Estate Planning in Chattanooga”

Provided by 4Sight Legal Services – Chattanooga Estate & Business Law

At 4Sight Legal Services, we believe estate planning is more than managing assets; it’s about securing your legacy and providing a future roadmap for your loved ones. This guide introduces the bare basics of estate planning, from wills to trusts and powers of attorney, and explains why these elements are crucial for all Chattanooga residents.

What is Estate Planning?

Once begun, estate planning is a lifelong process that begins with counsel and the creation of a a set of legal documents that convey how you want your assets, your financial capital, to be managed or shared for your own well-being and that of your loved ones should you die or become disabled. This includes identifying those who will inherit your wealth, those trusted persons who will manage those matters and carry out your wishes, train both your fiduciaries and your heirs and may include designative guardians for minor children. 

Our purpose at 4Sight Legal Services encourage and assist our clients to identify, manage and plan for the giving of their tangible and intangible capital to those they love. A clear, comprehensive and well-maintained plan helps to manage stress or loss, to restore order to the disruptions Life may bring and to communicate the unique values, priorities and voice of those we serve.  

Why Estate Planning Matters for Every Chattanooga Resident

1. Protecting Your Assets and Legacy
Whether you own a family home, have savings, or hold investments, estate planning ensures that your assets are directed according to your wishes. At 4Sight Legal Services, we know that every Chattanooga resident has a right, if not the obligation, to have a “self-determined” plan – one that imparts their wishes for their own care and the care of their present and future family.

2. Reducing the Burden on Loved Ones
A thorough estate plan reduces the emotional and financial burden on your family. Disability and death are times of additional stress, potential uncertainty and loss.  Without clear, complete and current documentation, it may be difficult, if not impossible, for your family to establish and adjust to a new normal. If the central component of your plan is a will, much of your estate is likely to require probate—a lengthy and typically unfamiliar process of court oversight. Experienced legal counsel helps you design a plan that minimizes these burdens.

3. Planning for Incapacity
Most clients tell us, “We want to control what we have while we are alive and well, provide for our own care and the care for those we love in the event of incapacity, and at death give what we have to those we love, when we want them to have it, in ways that transfer both our wealth and our wisdom.” This means Estate Planning isn’t just for after-death; it also ensures your and your family’s needs are met if you become incapacitated. Our team at 4Sight Legal Services is here to help you designate individuals you trust to make decisions for your healthcare and finances and capture your intentions for your own care and for those you love when you are disabled. .

Key Components of an Estate Plan

A comprehensive estate plan includes several key elements, each designed to protect your assets, health, and loved ones.

1. Last Will and Testament

A will is the foundation of many estate plans. It expresses your wishes for the distribution of many (but, not all) assets. In Tennessee, a valid will must:

• Be created by someone 18 or older and of sound mind
• Be signed in the presence of at least two witnesses, and preferably, a notary public

The court has jurisdiction on only those assets know as “probate assets.” People frequently have lot of assets over which the court has no authority – “non-probate assets – which must be considered in distributing wealth. Life insurance proceeds, the balance at death in an IRA, 401(k) or other retirement account, much real estate and even bank balances may pass to others outside a will or the probate proceedings. 

For Chattanooga residents, a will is especially important if you have minor children, allowing you to name a guardian. The team at 4Sight Legal Services can ensure your will meets these requirements and aligns with your goals.

2. Trusts

Trusts provide flexible and powerful options for managing and distributing assets. Our team at 4Sight Legal Services offers tailored solutions for various types of trusts:

• Revocable Living Trust: This trust allows you to control your assets while alive and can be updated as needed. It avoids probate and offers privacy.
• Irrevocable Trust: Once established, this trust cannot be changed without the beneficiary’s consent. It provides tax benefits and asset protection.
• Special Needs Trust: Supports beneficiaries with disabilities without jeopardizing their eligibility for government benefits.

Establishing a trust can streamline asset distribution, reduce taxes, and protect privacy for Chattanooga residents. A thorough, clear and well-designed trust is an excellent way of capturing your wishes for both disability and death. If a trust is “fully funded”, meaning that all assets are either owned by the trust or directed to the trustA Our experienced attorneys can help you choose a trust that meets your needs.

3. Power of Attorney (POA)

A power of attorney document allows you to authorize a trusted individual to carry out broad or specific tasks on your behalf. At 4Sight Legal Services, we offer guidance on the different types of POAs:

• Financial Power of Attorney: Gives an agent authority over financial matters, like paying bills, managing investments and potentially every other business or financial matter on your behalf..

In Tennessee, a durable POA remains effective if you become incapacitated. With it, you may be able to avert the need for a court o appoint a conservator or guardian. Most judicial proceedings can be costly. We can help you secure a durable POA that can save time, mitigates expense and aligns with your preferences.

4. Advance Healthcare Directive / Durable Healthcare Power of Attorney

An advance healthcare directive designates your Healthcare Agent, the person who is to communicate and protect your wishes for your health care, including end-of-life care, when you cannot communicate for yourself. This includes instructions about palliative care, life support, treatment of various conditions and food and hydration. This directive addresses the most personal of decisions, those for your personal physical care, comfort and mortality. Our attorneys at 4Sight Legal Services can assist in drafting this essential document to ensure clarity and peace of mind for all involved.

How to Start Your Estate Plan in Chattanooga

Creating an estate plan may feel overwhelming, but our team at 4Sight Legal Services is here to help you create and maintain an estate plan that gives you the greatest chance at SUCCESS (S-U-C-C-E-S-S).

1. Self-Determination: Established by you and does not default to the rules of distribution established by the laws of Tennessee.
2. Up-to-Date: Stays current as time goes by to the changes in your wealth, your health, your family and the law.
3. Comprehensive: Covers management and control of your wealth while you are alive and well and in the event of either disability or death and addresses the handling of all your assets in all their forms. .
4. Clear: Captures your voice, vision, priorities and wisdom in ways that help your helpers and your heirs handle receive your gifts as you intend.
5. Empowering: Helps you express what most of us intend with any gift.—to bless others in ways to encourage their own health, happiness and fulfillment.
6. Sustainable: Addresses how your wealth may be perpetuated for the well-being of your present family, your future family and perhaps your community for years and generations to come
7. Shared: Enables your heirs, your helpers and others to understand your wishes for them and prepares them for how you want them to be blessed

Common Misconceptions About Estate Planning

1. “I’m too young to need an estate plan.”
   Unexpected events can happen at any age. Starting your estate plan early ensures your protection and that of your family.
2. “Estate planning is only for the wealthy.”
   We have all have at least two kinds of “treasure” – our financial and material treasure and the people and principles we hold dear. Estate planning benefits anyone with assets, loved ones, and wishes for what happens to them. Even a simple will and power of attorney can make a difference.
3. “My family will automatically inherit everything.”
   Tennessee law prescribes asset distribution for the deceased without a will. Rarely, will this align with your wishes. Estate planning allows you to ensure your assets go to those you intend to have them in manner chosen by you, not the State.

The Role of 4Sight Legal Services in Estate Planning

Navigating estate planning can be daunting or complex, but our experienced team at 4Sight Legal Services is here to assist. We offer:

• Customized and comprehensive estate planning tailored to your vision, values and purposes.
• Technical, legal counsel to educate and help you enact a plan that supports those principles
• A system to maintain your plan as Life goes on and things change
• An accessible, empathic and responsive team to assist all along the way

Final Thoughts: Protect Your Legacy in Chattanooga

Creating an estate plan is a thoughtful way to provide for your family’s future and preserve your legacy. By establishing a will, trust, power of attorney, and healthcare directive, Chattanooga residents can ensure their wishes are honored, their loved ones are protected, and their assets are distributed as intended. Consulting with a legal team like 4Sight Legal Services brings peace of mind,  enhancing your and your family’s capabilities with the help of capable counsel.

Start your estate planning journey today with 4Sight Legal Services, Chattanooga’s trusted estate and business law resource. Together, we can protect your legacy and provide clarity for your family, helping you leave a lasting, meaningful impact.