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  • By: Robert Maines, Esq.
Estate planning tips for Tennessee residents - Maines Legal

Creating an estate plan is one of the most important steps you can take to protect your assets and ensure your family’s future is secure. In Tennessee, estate planning involves more than just drafting a will—it includes understanding different legal documents, how assets are transferred, and the role of trusts.

This guide will walk you through key estate planning basics, including:

  • The importance of a comprehensive estate plan.
  • Different estate planning documents and their uses in Tennessee.
  • The different types of trusts available in Tennessee and their advantages.

What Is An Estate Plan, And Why Is It Important?

As we go through life, we naturally accumulate things—whether that’s financial assets like homes, cars, and other valuables, or sentimental items that hold personal meaning. This is the foundation of our wealth. When we pass, most of us want to leave these things to the people we care about. That’s where an estate plan comes in.

An estate plan is important because it helps ensure that your assets are distributed according to your wishes, avoiding potential disputes among family members. More importantly, it limits how much the state can take from your estate if no plan is in place.

Without an estate plan, things can go wrong. For example, consider a real-life scenario where a father remarried and named his wife as the beneficiary of his life insurance, with her sister as the secondary beneficiary.

After both the wife and father passed away, the life insurance money went to the estranged step-aunt instead of the father’s only heir—his daughter. As a result, she was left without the resources needed to manage her father’s estate.

To prevent situations like this, where unintended people gain control of your assets, and to keep the state from deciding how your estate is divided, having a well-thought-out estate plan is key.

What Are The Initial Steps Required To Start Estate Planning In Tennessee?

In order to begin effective estate planning, you need to get all relevant documents together. You need to know what insurance coverage you have, what investments and retirement accounts you have, and you need to know the property you own, whether it is personal property or real estate.

Having these documents ready will give you and your attorney a clear picture of what needs to be addressed in your estate plan. While it’s helpful to gather this information in advance, your attorney can guide you through understanding the nature and implications of each asset.

What Are The Different Types Of Estate Planning Documents And What Do They Accomplish?

When sitting down with an attorney to plan your estate, there are several essential documents to discuss. Each serves a specific purpose: to make sure your assets are managed according to your wishes and that your loved ones are cared for.

These core documents include:

  • Last Will & Testament: This is the most basic estate planning document. It outlines how you want your assets and belongings to be distributed among your beneficiaries after you pass. A well-drafted will ensures your wishes are followed and helps avoid disputes among family members.
  • Powers Of Attorney: A durable power of attorney allows someone to handle your financial affairs if you are unable to do so. You can also establish a healthcare power of attorney to designate who will make medical decisions on your behalf if you become incapacitated.
  • HIPAA Release: You may think your loved ones will automatically have access to your medical information if you’re unconscious, but due to privacy laws, that’s not always the case. A HIPAA release authorizes medical providers to share information with the people you choose.
  • Pre-Need Declaration Of A Conservator: In case you lose the ability to make decisions, you can name a conservator—a person who will have authority over your financial or health-related decisions beyond what the power of attorney can provide. This gives you control over who will act in your best interest if needed.
  • Living Will: A living will outline your preferences for end-of-life care, such as whether you want a Do Not Resuscitate (DNR) order or other specific treatments. This document helps ensure that your medical care reflects your wishes if you are unable to communicate them yourself.

The goal of these documents is to create a comprehensive safety net that covers various potential situations as you age.

For instance, in a highly publicized case in Florida, a young woman’s family became embroiled in a legal battle over whether to continue life support after she was declared brain dead. If she had outlined her wishes in a living will, her family could have avoided the emotional turmoil and conflict.

By putting these key documents in place, you ensure your family is protected from unnecessary hardship and your assets are distributed according to your wishes.

While some attorneys may suggest setting up elaborate trusts, most people don’t need them unless their financial situation is particularly complex. By focusing on the basic estate planning documents, you can achieve peace of mind and security for yourself and your loved ones.

What Different Kinds Of Trusts Are Available In Tennessee?

Trusts have become increasingly popular in estate planning, but they aren’t always necessary for everyone. In Tennessee, the two main types of trusts are:

  • Revocable Trusts: These can be modified or revoked during your lifetime, providing flexibility. They are often used to streamline the transfer of assets after death and avoid probate. However, assets in a revocable trust remain part of your estate for tax purposes.
  • Irrevocable Trusts: Once assets are placed in an irrevocable trust, they cannot easily be taken back. This type of trust offers certain benefits, like asset protection and potential tax advantages, but it also means you give up control over the assets.

While trusts can serve specific purposes, I often steer away from recommending them except in certain situations – because many of the goals that a trust can achieve can also be accomplished with a well-structured will.

Trusts require a trustee to manage the assets, which often comes with additional fees and complications. And even though you may set up a trust to protect your assets, Tennessee’s rule against perpetuities means that trusts can’t last forever. Eventually, many trusts will require court involvement to be dissolved, which could cause delays or other issues for your family.

For most people, a will is sufficient to handle their estate planning needs without the added complexity of a trust.

Do I Need An Estate Planning Attorney, Or Can I Take A DIY Approach Using Online Services?

While DIY will kit or online estate planning tools might seem convenient, they can’t provide the personalized advice you need to ensure your estate plan is legally sound. A cookie-cutter approach simply won’t account for your unique circumstances or meet all of the legal requirements in Tennessee.

For example, Tennessee has specific rules about what makes a will valid and acceptable in probate court. If a DIY document doesn’t meet those standards, your will could be challenged, creating more problems than it solves.

Additionally, these online services lack the level of detail and care that a professional estate planning attorney provides. It’s a bit like trying to perform surgery on yourself after reading a manual—it’s just not worth the risk. An attorney ensures that your estate plan is tailored to your needs and that all legal requirements are met, giving you peace of mind and protecting your loved ones from potential complications later.

I’m Here To Help You And Your Family As You Begin Planning Ahead

My family-focused approach is rooted in active listening and empathy – because I understand that estate planning can be uncomfortable for many people, especially since no one likes to think about the end of life.

Often, men, in particular, feel like they have plenty of time to handle these matters, thinking they are invincible. I saw this firsthand with my father, who spent 46 years working in the cemetery industry, selling pre-need items, yet passed away without taking care of anything for himself.

You would think someone in that field would have created an estate plan – but the first time I learned anything about estate planning was when I joined the Army and had to create a will. Understandably, those experiences deeply influence how I work with people today.

When clients come to me, they rarely know much about the road ahead. My goal is to guide them through the process with personalized advice that fits their unique situation. The truth is, estate planning isn’t just about creating a will—it’s about understanding the full scope of someone’s life and making sure their wishes are honored both inside and outside of probate.

For example, most people think that a will keeps you out of the court process. In reality, what you put in your will is what has to be probated. Many assets—like retirement accounts, bank accounts, and life insurance policies—don’t need to pass through probate. Instead, they can be distributed based on beneficiary designations, which are often overlooked.

Because of this, I make sure to remind my clients of the importance of regularly updating their beneficiaries or “pay on death” (POD) designations. This ensures that those assets go directly to the intended recipient without court involvement.

By taking a holistic approach to my clients’ financial lives, I help them ensure that every part of their estate—whether it’s subject to probate or not—reflects their wishes. Through thoughtful conversations and attention to detail, I work to give my clients peace of mind that their loved ones will be taken care of, no matter what.

Ready to get to work on your estate plan? We’re here to help!

For more information on Estate Planning In Sweetwater, Tennessee, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (423) 456-4778 today.

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