Wills & Trust Essentials
Intestacy
Persons who fail to plan during their lives and die without creating a will 'die intestate'.
Each state has laws that dictate how an intestate person's property will be distributed leaving you with absolutely no control. Property may go to people you don't want and in ways that you never intended. Dying intestate means no tax planning was done on your behalf.
Each state has laws that dictate how an intestate person's property will be distributed leaving you with absolutely no control. Property may go to people you don't want and in ways that you never intended. Dying intestate means no tax planning was done on your behalf.
Will
A will ' or a 'last will and testament' ' is a legal document that tells the probate court how you want your property distributed after you die, and who has the power and responsibility to wrap up your affairs. Through the probate process the court will give the 'executor' of your will the authority to gather all of your property, pay any remaining creditors' bills, and distribute your remaining property as you specify in your will.
Because the will takes effect only after a court determined that it is a valid document, a judge must act before your executor can step in and manage your estate. That means Probate and Probate means hassle and expense! We want to avoid probate to the greatest extent possible!
Because the will takes effect only after a court determined that it is a valid document, a judge must act before your executor can step in and manage your estate. That means Probate and Probate means hassle and expense! We want to avoid probate to the greatest extent possible!
Revocable Living Trust
Perhaps the most common type of trust is the revocable living trust. As the name implies, revocable trusts are fully revocable at the request of the trust maker. Thus, assets transferred (or 'funded') to a revocable trust remain within the control of the trust maker; the trust maker (or trust makers if it is a joint revocable trust) can simply revoke the trust and have the assets returned. Revocable trusts can be excellent vehicles for disability planning, privacy, and probate avoidance.
REVOCABLE LIVING TRUST based estate plan provides instructions that will allow you to:
• Control your property while you are alive
• Take care of you and your loved ones in the event of disability
• Pass your property to your heirs when and how you want while maintaining privacy
• Ensure that you and your spouse have sufficient assets to maintain your standard of living now and in retirement.
• Maintain maximum control and flexibility during your lifetime.
• Provide for you in the event you become disabled.
• Simplify administration as much as possible upon your death or disability (avoiding probate & guardianship).
• Avoid having your private matters being made public unnecessarily.
• Ensure that the efforts you desire are used to save your life.
• Have your property continue to benefit the survivor after one of you dies.
• If married, protect your assets so that they cannot be lost as a result of remarriage after the death of one of you.
• Ensure that the persons you select in fact become the guardians of your minor children.
• Protect your children's or grandchildren's inheritance from mismanagement.
• Structure your children's or grandchildren's inheritance in such a way that it installs values and virtues.
• Educate your children and grandchildren.
• Reduce the risk of litigation from heirs who receive less than they think they are entitled to.
• Minimize income taxes to the extent possible.
• Avoid or minimize capital gain tax on the sale of assets.
• Eliminate as much estate tax as possible.
• Control your property while you are alive
• Take care of you and your loved ones in the event of disability
• Pass your property to your heirs when and how you want while maintaining privacy
• Ensure that you and your spouse have sufficient assets to maintain your standard of living now and in retirement.
• Maintain maximum control and flexibility during your lifetime.
• Provide for you in the event you become disabled.
• Simplify administration as much as possible upon your death or disability (avoiding probate & guardianship).
• Avoid having your private matters being made public unnecessarily.
• Ensure that the efforts you desire are used to save your life.
• Have your property continue to benefit the survivor after one of you dies.
• If married, protect your assets so that they cannot be lost as a result of remarriage after the death of one of you.
• Ensure that the persons you select in fact become the guardians of your minor children.
• Protect your children's or grandchildren's inheritance from mismanagement.
• Structure your children's or grandchildren's inheritance in such a way that it installs values and virtues.
• Educate your children and grandchildren.
• Reduce the risk of litigation from heirs who receive less than they think they are entitled to.
• Minimize income taxes to the extent possible.
• Avoid or minimize capital gain tax on the sale of assets.
• Eliminate as much estate tax as possible.
Ancillary Documents
We use the following documents in conjunction with a suitable estate plan for you to best tailor the plan to fit your individual circumstances.
Pour-Over Will
In the event that you die with assets outside of your living trust, a pour over will acts to complete your estate plan, by providing that assets not transferred to your trust during life are to be transferred to trust after death.
HIPAA Authorization
The Health Insurance Portability and Accountability Act of 1996 (HIPAA), absent a written authorization from the patient, a health care provider or health care clearinghouse cannot disclose medical information to anyone other than the patient or the person appointed under state law to make health care decisions for the patient. The Regulations promulgated under HIPAA specifically authorize a HIPAA Authorization for release of this information to persons other than you or your personal representative. Thus, you should consider creating such an Authorization so that loved ones and others can access this information in addition to the personal representative.
Planning Tip: Consider preparing a HIPAA Authorization for loved ones and others who potentially need access to your medical information if you become disabled. Your estate planning attorney can create such a HIPAA Authorization for you.
Planning Tip: Consider preparing a HIPAA Authorization for loved ones and others who potentially need access to your medical information if you become disabled. Your estate planning attorney can create such a HIPAA Authorization for you.
Durable Power of Attorney
Who will make decisions for you if you are unable to make them for yourself? Who will have the power to sign documents on your behalf, or make sure your bills get paid? Without a durable power of attorney, someone who is mentally incapacitated must be taken to guardianship or conservatorship court to have a decision maker named for them by a judge. A carefully written durable power of attorney will allow you to name someone you trust to make decisions for you if you become disabled to the point of no longer being able to make those decisions yourself.
Health Care Power of Attorney
A healthcare power of attorney allows your trusted friend or family member to make medical treatment decisions for you if you are unable to communicate your wishes to doctors. Without one, you must have a guardian or 'conservator' of your person appointed by the court before decisions can be made on your behalf. A healthcare power of attorney not only saves precious decision making time, but it also makes sure that the individual you trust the most has the power to make these most important decisions for you if you are unable to make the decisions on your own.
Contact Us Today to Schedule a Consultation -- If you don't currently have the above essential documents, you do not have a comprehensive estate plan and your current "plan" is obsolete! 855-497-6529 (855-4WRN-LAW).
