|
|
|
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.
Return to
top |
|
Generally probate is
only necessary when when a person dies
leaving property in his or her own name.
Return to top |
|
The person who
administers the property during the probate
process, usually appointed by the court on
the basis of being named in the will.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
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.
Return to top |
|
|
Portions of this information have been taken from
The Probate & Estate Planning
Section State Bar of Michigan |
The information
provided is intended for informational purposes only and
does not necessarily reflect your particular situation.
This website does not nor does it intend to dispense legal,
tax or financial advice.
|
|
|
