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"Estate planning" is a process to consider alternatives for, to think through, and to set up legally effective arrangements that would meet your specific wishes if "some-thing happens" to you or those you care about.
Good estate planning is more than "just a simple
Will". Estate planning also typically minimizes potential taxes and fees,
and sets up contingency planning to make sure your wishes regarding
health care treatment are followed.
On the financial side, a good estate plan
coordinates what would happen with your home, your investments, your
business, your life insurance, your employee benefits (such as a pension
plan), and other property in the event you became disabled or if you die.
On the personal side, a good estate plan
includes directions to carry out your wishes regarding health care matters,
so that if you ever are unable to give the directions yourself, someone you
select would do that for you and know when you would want them to authorize
"heroic measures" and when you would prefer they "pull the plug".
The term "estate" consists of all the property a
person owns or controls, whether in his or her sole name, held in a
partner-ship, in a joint ownership arrangement, or through a trust, and all
other monies that would be generated on the person's death, such as through
life insurance. It includes things like real property such as houses barns
etc, personal property such as stocks, cash, jewelry etc, and life
insurance, pensions and benefits.
You should have an estate plan if:
If you do not have minor children, do not care about your
property, and have no concerns about your health care treatment, then you do
not need an estate plan. But if
you meet any of these categories above, you should have an estate plan.
The only time that you can prepare and
implement an estate plan is while you are alive and have legal capacity
to enter into a contract. If you are
unable to manage your own affairs or suffer from some other
disability which affects your legal capacity,
your estate plan may be effectively
challenged by those who assert that you lacked capacity at the time
the documents were created, that you were subjected to fraud, coercion
or undue influence during the creation and implementation of your plan.
The best time to start an estate plan is now, while you have the
capacity to do so.
Here are some things that may and should be included in your estate
plan:
A Will
Sometimes called a " Last Will and Testament", is to
transfer property you hold in your name to the person you want to have it. A
Will also typically names someone you select to be your Personal
Representative (or "executor") to carry out your instructions and names a
Guardian if you have minor children. A Will only becomes effective upon your
death and after it is admitted to probate.
"Durable Power of Attorney for Health
Care"
Appoints a person you designate to make
decisions regarding your health care
treatment in the event that you are unable to
provide "informed consent".
"Living Will" or "Directive to Physicians"
Is an advance directive which gives doctors and hospitals
your instructions regarding
providing or stopping health care treatment should you
suffer permanent incapacity,
such as an irreversible coma.
"Durable Power of Attorney for
Property"
Appoints a person you designate to act for
you and handle financial matters
should you be unable or perhaps unavailable
to do so.
"Living Trust"
Can be used to hold legal title to and provide a
mechanism to manage your property. You can select the person or persons
you want -- often even yourself -- as the Trustee(s) to carry out the
instructions you want in the Trust. Unlike a Will, a Trust, usually
becomes effective immediately, continues in force during your lifetime
even
in the event of your incapacity, and
continues after your death.
Most Trusts are "revocable"
which allows the person who creates the trust to make future changes,
modifications and even to terminate it. (If the trust is "irrevocable",
changes, modifications and termination are very difficult, although such
trusts often carry some tax benefits). Trusts also help you avoid or
minimize the expenses, delays and
publicity of probate.
"Family Limited Partnership"
To own and manage your property, in a similar manner
to a Trust, but allowing additional tax planning techniques to be
employed. Family Limited Partnerships are typically used for those who
have large estates and thus have a need for specialized estate planning
in order to avoid federal and state estate/death/inheritance taxes.
Should I Use A Lawyer?
Only an attorney who regularly practices in the
fields of wills, trusts, probate and estate planning is able to provide
you with really sound legal advice as you put your estate plan into
place. Attorneys are subject to regulation by bar organizations, many of
which have continuing education requirements and mandatory liability
insurance in case the lawyer makes a mistake.
When you speak with an attorney, you can get answers
to your questions -- including
how much it would cost.
Often the expense incurred in retaining an attorney
to prepare and help you put an estate plan into place is worth hundreds
of times what you and your family would pay with no planning or poor
planning. It would also avoid the financial and emotional
nightmares that can occur with a poorly
drafted (or improper) plan.
Source:
Simpler Times was established to aid consumers and
families in seeking out reputable firms who are dedicated to providing
practical and affordable options being sought by a growing number in
today's changing society.
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