Estate Planning Law
An effective estate plan should be designed to help you manage and preserve your assets while you are alive but, more importantly, your estate plan should conserve and control the distribution of your assets upon your death pursuant to your goals and objectives. An estate plan should protect you, your family and your assets from complications, unnecessary legal fees and taxes upon your death. Therefore, your plan should first consider whether the size of your estate will require the use of tax saving devices to eliminate or at least minimize the payment of federal estate tax on death. An estate plan should also assist you in the event you are incapable of handling your business affairs or healthcare decisions. Your plan should prevent time consuming, costly, and frustrating court proceedings. Finally, a plan should reduce the cost and delay of probate, thereby providing your designated assets to your beneficiaries in a swift and efficient manner. A well planned estate, therefore, utilizes at least a combination of the following documents:
- Revocable Living Trust
Unlike a will, which can take many months to wind its way through probate, a living trust can pay out assets immediately after death. Thus, your estate can quickly and easily settle bills, sell property and take care of other matters thereby avoiding the expenses associated with probate.
A revocable living trust also provides complete privacy to you and your family. The only people who need to know about the contents of a living trust are your attorneys and the trustees. In most cases, even the beneficiaries do not need to be informed about the trust or its provisions. This is not the case with probate, where records are open to the public.
Furthermore, if you become incapacitated and unable to handle your affairs, a correctly structured trust can provide for you and your family's needs without court intervention.
- Wills
If you are young and single you may not need much estate planning, but if you have some material possessions you should at least have a will. A will designates who you want to receive your property upon your death. It also dictates, among other things, how debts and taxes are paid upon your death. If you have children, you may also nominate a guardian/conservator to care for your children upon your death.
- Powers of Attorneys and Advanced Health Care Directives
Since incapacity can strike at anytime, every adult should consider having a General and Healthcare Power of Attorney, as well as, an Advanced Health Care Directive. A General Power of Attorney allows a person to name an agent to handle their financial affairs should they be unable to do so. The document may be effective immediately or only upon the person's disability. Generally, a person without a General Power of Attorney who becomes incapacitated must have a conservator appointed by the court to handle their financial affairs.
A Healthcare Power of Attorney allows a person to name an agent to make health care decisions for that person in the event they are unable to do so. As with the General Power or Attorney, the document may be effective immediately or only upon the person's disability. Generally, a person without a Healthcare Power of Attorney who becomes incapacitated must have a guardian appointed by the court to make health care decisions for them.
A Living Will or Advance Directive provides specific direction as to what the individual would want if he or she has a terminal condition, is in an irreversible coma or persistent vegetative state.
To speak with a qualified attorney at our firm about your current estate planning or if you would like to learn more about setting up your own personal estate plan please contact us to set up an appointment.