Estate Planning
Why should I spend money on Estate Planning?
There a number of reasons to do estate planning:
- Ease the burden of your family upon your passing. In their time of grief they will know exactly what you wanted and your wishes will be carried out.
- Avoid probate. By avoiding probate you do not only avoid unnecessary fees and costs but you do not force your beneficiaries (spouse, children, grandchildren, etc.) to wait, sometimes a long time, to take possession of your assets.
- Privacy. Your living trust is private. Your documents will not be public record for any person to come look at and contest. Your assets and wishes will be kept private and only accessible to the people you designate.
- Tax Avoidance. There are many ways to structure your estate plan in order to avoid or at the very least minimize any taxes to be due and payable at your death forcing you to add the government to your list of beneficiaries.
What does my Estate Plan consist of?
Every person’s estate plan is different and is tailored to the goals and circumstances of each individual beneficiary. However, most basic estate plans consist of the following items:
- Will
A document, prepared and executed by a person which is intended to govern and direct the disposition of his estate and settlement of his legal affairs at the time of his death and which has no legal effect until his death.
- Living Trust
A "living trust" (also called an "inter vivos" trust) is trust that you create while you're alive that controls what will happen with your estate at your death. It is a private document that dictates in writing what your wishes are for your estate at your death. Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management.
- Power of Attorney
A power of attorney is a document in which you state that you give someone else the authority to make certain decisions and act on your behalf if you are unable. Executing a power of attorney does not mean that you can no longer make decisions; it just means that another person can act for you also.
- Medical Directive
Allows you to dictate your wishes with regard to medical treatments (e.g. resuscitation and artificial feedings), organ donation, and allows you to appoint a proxy to make medical decisions on your behalf if you are unable. It only becomes effective when you are held to be incompetent or unable to make the decisions at that time.
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