Estate Planning
ABOUT US
Whether we are rich or poor, old or young, we all need some form of plan for our
estate to preserve our wealth, protect what we have worked very hard to obtain,
make things as easy as possible for our loved ones we leave behind and provide
peace of mind that our
wishes will be followed should we become incapacitated or deceased.
When determining what the plan should consist of, the primary documents
considered are Wills, Living Trusts, Durable Powers of Attorney for financial
matters and Healthcare Directives. Each of these documents has a
particular purpose which may be appropriate depending upon a client’s need and
circumstances. The typical “Estate Plan” will include a Living Trust,
Durable Powers of Attorney, Advance Healthcare Directives and Pour Over Wills.
Our office will make sure that all of the documents
prepared are explained to you in plain language and that your estate plan
accurately reflects your wishes and desires in all respects. Our fees are very
competitive and almost all of our new business comes from “word of mouth”
referrals.
Living Trusts:
For most clients, the appropriate plan will include
a Living Trust. The advantages of a Living Trust include the ease of
transferring property without the need for
probate and the
significant expenses that are associated with it. A Living Trust can also be an
important tool in reducing or eliminating the amount of estate tax paid to the
government upon your passing. A Living Trust will also provide for you should
you become incapacitated and allow you to avoid the necessity of a Court
Appointed Conservator. It also allows for the distribution of property to
younger members of your family as well as providing for the guardianship of your
minor children. A Living Trust is generally not recorded so your documents
remain private.
In a typical Living Trust arrangement, the person
creating the trust and transferring property into it, called the “Settlor” or
“Trustor”, is also the person, called the “Trustee”, the one authorized to
manage the assets in the trust. The Trustor is usually also the “Beneficiary”,
or the one entitled to the benefits of the property transferred to the trust
prior to their passing. Upon the death of the Settlor, the trust assets are
generally distributed to the contingent Beneficiaries without the need for court
supervision. Living Trusts are typically revocable and subject to amendment if
the Settlor deems it appropriate.
Durable
Power of Attorney:
A
Durable Power of Attorney is used to allow one granting the authority (usually
called the “principal”) to have her or his affairs handled easily and
inexpensively in the event they become incapacitated, or even in cases when they
are temporarily unavailable. Absent a power of attorney, the only way to handle
the affairs of an incapacitated person is to obtain a Court appointed
conservator, process that frequently involves complex and costly court
proceedings, as well as the often humiliating determination that the principal
is wholly incapable and in need of protection. Using a Power of Attorney, a
principal can appoint someone to handle their affairs after she or he becomes
incompetent. Because no judicial proceedings are necessary, the principal saves
time and money and avoids the stigma of being declared incompetent.
Advance
Healthcare Directive:
An "Advance
Health Care Directive" (sometimes also referred to as a power of attorney for
healthcare) lets your physician, family and friends know your health care
preferences, including the types of special treatment you want or don't want at
the end of life, your desire for diagnostic testing, surgical procedures,
cardiopulmonary resuscitation and organ donation. Advance Healthcare Directives
can also eliminate the need for a costly court proceeding to appoint a
Conservator to make healthcare decisions for you.
By
considering your options early, you can ensure the quality of life that is
important to you and avoid having your family "guess" your wishes or having to
make critical medical care decisions for you
under stress or in emotional turmoil.
Pour Over Will:
A pour-over Will is a particular type of Will used
in conjunction with a
Trust. Most people
intentionally don't put all their property into the Trust, sometimes for
convenience (such as a car -- some states and insurance companies seem incapable
of dealing with vehicles held in a trust) or other times for tax reasons. Most
often people forget to put newly acquired property into a Trust on an on-going
basis. To prevent the creation of an intestate estate, a Pour Over Will is
used to catch any property which had been transferred, intentionally or
unintentionally, to the Living Trust at the time of your death. By the terms of
the Pour Over Will, the property that it catches is distributed to your existing
Living Trust. Whenever a Trust is used, it is essential to also have
a Pour Over Will to catch your property which was not held by the Trust, not
held in joint tenancy, or subject to other contractual arrangements at the time
of your death.
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