Estate Planning
You may think that estate planning
is only for the very wealthy, and although that is true, it is also true
that everyone needs to do some estate planning. If you have a
modest estate, you need to have some basic documents in place to assure
that your assets are distributed as you want them to be. If you have a
more sizable estate, you will need to do more in the way of estate
planning to avoid death taxes, pass your estate on and ensure the proper
distribution and liquidation of your estate.
Here are some basics of Estate
Planning
A Will
There are many reasons why it is important to have a will as part of
your estate plan. A will allows you:
A Living Will
A living will is a declaration
that you desire to die a natural death. You do not want extraordinary
medical treatment or artificial nutrition or hydration used to keep you
alive if there is no reasonable hope of recovery. A living will gives
your doctor permission to withhold or withdraw life support systems
under certain conditions.
Healthcare Power of Attorney
You have the right to control
the decisions about your medical care. To make these decisions, you must
be competent and able to communicate. If you are not competent or able
to communicate, someone else must make those decisions for you. A health
care power of attorney allows you to choose who will make medical
decisions for you if you cannot make them yourself.
To sign a health care power of
attorney, you must be at least 18 years old, and you must be able to
make and communicate health care decisions. You are called the
principal. You may appoint any competent person who is at least 18 years
old and who is not providing compensated health care to you. The person
you appoint is called your health care agent.
Trusts
A trust is a useful and flexible
estate planning tool that can be tailored to meet the needs of the
grantor and his family. A competently drafted trust can accomplish many
objectives. To find out whether a trust is right for your family,
consult with an estate planning attorney.
A trust is a legal arrangement
where the grantor transfers legal ownership of property to a trustee to
hold and manage for the benefit of named beneficiaries. Trusts can
be made revocable or irrevocable and can be put in place during life
(living trust) or at the point of death (testamentary trust).
All of these documents are
important and you should consult with a good estate planning attorney to
create them. This might be the most important single thing you can do to
protect what you have and to ensure your wishes for healthcare and end
of life procedures are honored. Let me know if you would like a referral
to a qualified attorney.
