GENERAL ESTATE PLANNING
Powers of Attorney, Health Care Directives, Deeds, Wills, Trusts
Whether old or young, wealthy or of modest means, almost everyone has an estate. Your estate includes everything you own, including your home, car, investments, life insurance, bank accounts, furniture and artwork among other personal possessions. However, no matter how large or small your estate is, you will leave it behind when you die.
Even after working so hard to acquire assets, many people have not considered what will happen to those assets in the event of their death or incapacitation. Essentially, they do not have an estate plan. Mostly, you would want to control who receives your possessions, what they receive and when they receive them.
Estate planning is simply making advance arrangements for the transfer of your assets to those you care most about. However, good estate planning also involves minimizing legal fees, taxes and court costs.
An estate plan may help you preserve family wealth, provide for a surviving spouse and children or make a contribution to a charitable cause. It also ensures the control of your assets is with the people you choose and not the courts. Generally, an estate plan ensures your wishes are carried out, and your loved ones are well taken care of even in your absence.
General estate planning includes some commonly used terms including;
Will – a will is a legal document that provides your instructions on how to distribute your assets after your death. It can also appoint guardians for minor children. However, assets in your will have to go through the probate process.
Probate – Probate is a legal process in which a court reviews and determines the validity and authenticity of your will before allowing the executor to distribute your estate according to your will.
Executor/Trustee – An executor or a trustee is the individual you appoint to administer your estate in the event of your death or incapacitation. An executor can also be appointed by the court in case you die without an appointment.
Living Trust – While a living trust is similar to a will in that it is a legal document that provides instructions on the administration of your estate after death or incapacitation, it places your assets into a trust during your lifetime. It avoids probate and allows your wishes to be carried out without involving the courts.
Power of Attorney – power of attorney is a legal document you sign to give an individual you trust the authority to make decisions on your behalf, including distributing your assets in the event of your death or incapacitation.
Health Care Directive – A health care directive is a legal document that outlines your health care wishes or how you want your medical decisions to be made in the event of incapacitation.