The process of “Estate Planning” is the formulation of a definite plan for
managing your assets while one is alive and the distribution of those assets
after one’s death.
Will:
A will is the most common document used to specify how an estate should be
handled after death. The person(s) you designate to receive your property are
called beneficiaries. A will can be very simple or very elaborate, depending
upon the size of the estate and the wishes of the person who makes it. Many
types of post-death instructions can be described in a will and the key is to
ensure that your will details exactly what you wish to have happen at your
death.
Trust:
A living trust is a legal document that contains your instructions for what
you want to happen to your assets while you are living and how they are to be
managed upon your death. When your trust instrument is executed, you transfer
assets from your name into the name of your trust. And unlike a will, a living
trust avoids probate at death.
The living trust can control all of your assets and can prevent your family
from having to obtain a court-ordered guardianship if you become incapacitated.
Assets in the trust can be managed by the trustee, whom you have chosen, even
after your death. Usually this means that the trust will continue until the
beneficiaries of the trust reach certain ages or for life, if your beneficiary
has special concerns. Anyone who has a disabled family member or a family member
with drug, alcohol or marital concerns should consider using a living trust.
How does a living trust work?
Usually the living trust is revocable which means that you can make changes
at any time you wish. The person who controls the trust assets is called the
Trustee. You are usually the trustee and so you control any assets that you
transfer to the trust. At your death, the successor trustee you have chosen
takes over the trust assets. The successor trustee pays any debts and
distributes the trust assets in accordance with the terms of the trust which you
created. There is no probate of any assets which are held by the trust.
If you have a living trust prepared we also recommend that you prepare a
will. This will is often referred to as a "pour-over will" and acts as a safety
net that will cause any remaining or forgotten assets to be transferred to your
trust. Any assets that are not in your trust at death will be subject to
probate, so it is advisable to transfer all assets into your trust.
A living trust should not be confused with a "living will." The living trust
governs your financial affairs. The "living will" is for your medical affairs.
Power of Attorney:
A Durable Power of Attorney is a written document that gives one or more
persons the authority to make personal and financial decisions for you when you
cannot act on your own behalf due to absence or incapacity. A durable power of
attorney is absolutely critical for a proper estate plan.
Advance Medical Directive:
An advance medical directive is a living will and medical power of attorney
that allows you to name someone to make medical treatment decisions for you in
case you are unable to do so yourself.
Estate planning is much more than simply having a will. It involves your
family’s security, prosperity and peace of mind. Our firm handles estate
planning for families and estates of all sizes and each estate plan is custom
drafted for your individual needs. Our services include planning for military
families, children with special needs, retirement planning and tax planning for
larger estates.
