Estate Planning: More than a Will
Are you prepared for the unexpected? In these current uncertain times, many people are planning for the unexpected situations of serious illness, mental incapacity or death. Now is an opportune time to create an estate plan to protect yourself, your property and loved ones. The following is a brief summary of important documents to consider including in a comprehensive estate plan.
Last Will and Testament
Your Will directs the distribution of your property at death. Through your Will, you specify who receives your assets. Without a Will, your property is transferred according to state intestacy laws. You also appoint a person (called a Personal Representative or Executor) to manage your affairs according to the terms of your Will. If you have minor children, your Will would also include provisions for the appointment of a guardian to care for your children until they reach the age of majority.
Revocable Living Trust
A Revocable Living Trust is an agreement creating a legal entity to hold property. The creator (called a Grantor or Settlor) is oftentimes the initial Trustee, who manages and administers the trust assets and terms. A successor Trustee is appointed in the event the Grantor/Settlor is unable to act, whether it be due to incapacity or death. The Trust can be amended or revoked at anytime during the lifetime of the Grantor/Settlor. Similar to a Last Will, a Revocable Living Trust details who receives assets upon death. The biggest difference is the trust assets transfer without the necessity of probate. A big misconception is that having a Will avoids probate. Thus, by establishing a Revocable Living Trust and re-titling your assets into the Trust, you avoid the need for probate, saving time and costs.
Financial Durable Power of Attorney
in a Financial Durable Power of Attorney you appoint another individual (called your agent or attorney-in-fact) to make financial decisions on your behalf. Financial decisions include paying bills, buying or selling property, making investments, filing taxes, managing debt, applying for public benefits, etc. You can decide whether the powers in the Financial Durable Power of Attorney are effective immediately upon signing, or are limited to the event of your incapacitation. The powers are only effective during your lifetime, meaning, your agent cannot transact financial matters after your death.
Having a Financial Durable Power of Attorney included in your estate plan is essential if you become seriously ill or incapacitated. The document can also be useful if you travel out of state or internationally and need assistance with your financial affairs while away from home.
Health Care Durable Power of Attorney
In a Health Care Durable Power of Attorney, you appoint an individual (called agent or attorney-in-fact) to make medical decisions for you in the event you are incapacitated and unable to do so for yourself. In this document, you also nominate a person to serve as your guardian should it be necessary for a court to appoint a guardian for you.
Appointing a trusted family member or friend to make your medical decisions for you in the event you are unable to make such health care decisions is an important part of your estate plan.
Living Will (Health Care Directive)
In a Living Will, also called a Health Care Directive of Advanced Directive, you decide whether or not you want certain treatment and procedures to sustain your life if you were in a persistent vegetative state. This important declaration sets forth your wishes if you were in a permanent coma with no significant chance of recovery. Without a Living Will, decisions such as removing life support are made by your health care agent or your family members. Including this important document in your estate plan will help your family during a highly emotional time.
Estate Planning: More than a Will
A comprehensive estate plan will include essential documents to assist you during your lifetime and accomplish your wishes at death. The attorneys at The Wibbenmeyer Law Firm LLC, in St Charles MO assist clients with their estate planning needs. Call (636) 724-3355 to speak with an attorney to create or amend your estate plan.