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Estate Planning FAQ
Probate is the manner of administering
the property (estate) of a decedent (person whom passed) by
a personal representative under the jurisdiction of a county
probate court.
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Generally probate is only necessary when
when a person dies leaving property in his or her own name.
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The person who administers the property
during the probate process, usually appointed by the court on the
basis of being named in the will.
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A living trust is is the name given to a
trust created during an individual's lifetime. It is created for
the benefit of the individual during his or her life, and after
death allows for the assets to be managed for the benefit of the
beneficiaries.
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First, probate avoidance is the primary
reason to establish a living trust. Second, privacy is an
important element because without a trust, the financials of your
estate become public record. Third, is estate tax savings. If
your estate is more than the amount excluded from federal estate
taxes, it could be subject to estate tax when you die. And
lastly, proper management of assets. A living trust allows you to
reduce the risk of inexperienced and unskilled management of
property after your death.
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First and foremost is selecting an estate
planning attorney. Your financial advisor is also an excellent
individual to aid you in starting the trust, and most work closely
with their own attorneys so you can be assured that you are
getting the best help possible.
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A document giving someone authority to act
on your behalf in handling your affairs. For example, to sign
checks, pay bills, contract medical services or sell property.
The authority can be very broad such as allowing the individual to
do anything you can do, or very narrow such as only allowing them
to sell a certain piece of property.
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Written power of attorney which contains
the words "this power of attorney shall become effective upon my
disability" or similar words. It must be signed by you before any
disability to become valid.
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Yes. If you are disabled your spouse can
still sign checks and make withdrawals on joint bank accounts,
however, your spouse cannot sell anything owned jointly like
stocks, your house or a cottage.
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As long as you are competent you can revoke
your durable power of attorney. The revocation should be in
writing and delivered to the agent (the person whom has the power
of attorney) and any third parties with who the agent is dealing.
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First, you (not a court) will select your
agent. Second, it will give you and your family the peace of mind
knowing that you have named someone to handled your affairs. And
lastly, it can save time and the expense of a court proceeding.
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Portions of this
information have been taken from The Probate & Estate Planning
Section State Bar of Michigan |
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