 "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.
|
