Estate Planning: Some Helpful Tips
Facing our mortality is something that none of us want to think about as it seems so negative yet preparing responsibly is one of the most important things we can do for our loved ones.
Few realize that there are so many critical details to be decided ahead of time. Here are just a few examples:
- Who is going to facilitate the final disposition of your estate and make sure that your intended beneficiaries receive their appropriate distribution?
- Does your estate have to go through the lengthy and costly process of a probate, or is there some other estate planning device in place that bypasses the probate process?
- What happens to your children, loved ones, pets, significant others in the event of your death?
- Do you want to give gifts to people and/or charities?
- Whom do you want to take care of facilitating your estate, make healthcare decisions, and make financial decisions on your behalf in the event that you are incapacitated?
- In this modern technological age, does someone have access to your digital life, your passwords, your user names, and answers to security questions safeguarding valuable assets that only maybe accessible by computer.
These questions and many others should be discussed with an appropriate estate planning session.
Even once you’ve made decisions about the answers to these questions, there are a variety of ways to document them in order to ensure that your wishes are carried out properly. For example, the following is a partial list of documents that may be useful and/or relevant to your estate planning process:
- Will: A will is a document that requires probate which directs the disposition of a person’s property after death and is only one part of an estate plan. Assets that pass by virtue of a will do not avoid probate and the associated probate fees, legal fees, privacy concerns and unnecessary delays. A will is just one item of a comprehensive estate plan. If a person dies without a will they are said to have died “interstate” and state laws will determine how and to whom the person’s assets will be distributed. A will does not help manage a person’s affairs when they are incapacitated, whether by illness or injury.
- Trust: A trust can help avoid probate (and the associated probate fees, legal fees and privacy concerns, unnecessary delays, etc.) if done properly. A simple or complex trust can serve a variety of legal, personal investment or tax planning purposes. There are different types of trusts, such as the A, A-B, or A-B-C living trust, special needs trust, second marriage trusts.
- Healthcare Directive: A healthcare directive is a document that specifies the type of medical and personal care you would want if you should lose your ability to make and communicate your own decisions. Your healthcare directive can specify who will make and communicate decisions for you in your time of need.
- Power of Attorney: A power of attorney is a legal document giving another person (the attorney, in fact) the legal right to do certain things for you. A power of attorney may be very broad or limited, specific and the powers depend on the terms of the document. The power of attorney also allows you to have someone manage your affairs if you are disabled or possibly incapacitated.
The above is only a partial list of items that should be included as part of an estate planning meeting. Remember estate planning does not have to be painful like a trip to the dentist; in fact, it can be enjoyable if it gives you an opportunity to do some advanced planning with your loved ones! If you are interested in discussing any of the items above or any other items, please feel free to contact me.
Share Estate Planning: Some Helpful Tips
Comment on Estate Planning: Some Helpful Tips
Leave a Reply