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Estate Planning
 "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:
- you are the parent of minor children
- you have property that you care about
- you care about your health care treatment.
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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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.
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