|
Preparing your Estate Plan can be the greatest gift to your family. Losing a family member is a very stressful and confusing time for anyone, but that stress can be eased by having your estate in order. At Kellogg & Palzer, P.C., we work closely with our clients so that the Will is a legal reflection of the client's wishes and intentions, and not just a form with your name plugged in.
At Kellogg & Palzer, P.C., we also design an estate plan that most effectively protects your intentions, but without being overly complicated. Your estate plan should complement your life, not complicate your life.
The process is not as difficult as you may think. There are three basic components to any Estate Plan: Last Will and Testament, Durable Power of Attorney for Property and Durable Power of Attorney for Health Care. In some cases, your situation may be complex enough to require a Living Revocable Trust, or even an Irrevocable Trust. All of these documents are discussed below.
Last Will and Testament: This document takes effect after your death. In your Will, you appoint a Personal Representative to manage your estate, and you indicate how you would want to have your property divided. If you have minor children, your Will states who will be designated Guardian of your children. If you establish a Testamentary Trust (a trust that is created by your Will after your death) for your children or for any beneficiary, your Will designates who will be the Trustee of that Trust, and also sets out the terms of that Trust, such as how funds will be used to benefit your children.
Durable Power of Attorney for Property: If you experience a period of disability or incapacity, such that you can not make decisions for yourself, you need this document to allow someone else to make decisions for you. The Agent under this document ensures that bills are paid, and your finances are handled according to your wishes during this time.
Durable Power of Attorney for Health Care: This document allows your Agent to make all health care decisions for you when you can not make decisions for yourself. This document also contains your wishes concerning the termination of life support in the event that you will not recover from incapacity. Also referred to as a "Living Will," this is a document that needs to be carefully drafted so that your wishes are clearly stated so that they are properly carried out, and so that family disputes can be avoided. As we've seen in recent events, unless your wishes are clearly stated, family disputes can end up in litigation, where no one really wins. At Kellogg & Palzer, P.C., we pride ourselves on working closely with our clients to make sure that your wishes and your dignity will be preserved if this unfortunate situation ever occurs.
Living Revocable Trust: Often times an individual's estate is complex enough to require the creation of a Living Revocable Trust. This situation can arise when an individual's assets exceed the Federal Estate Tax exemption (currently 2 million dollars), when an individual owns real estate in multiple states, when there is an existing or expected disability or incapacity of the individual, a spouse or child, or simply when the individual wishes to avoid the time and expense of probate. During your lifetime, you are virtually indistinguishable from your trust, as you act as your own trustee. At your incapacity or death, your successor trustee takes over to manage the trust for your benefit and the benefit of your heirs. Like the Last Will, your Living Revocable Trust states how you want your estate to be divided at your death and can establish new trusts for minor children.
Irrevocable Trust: Occasionally an individual needs to create a trust that can not be changed or amended. This can arise in a number of situations to protect the assets of an individual because of a disability, to reduce federal estate tax liability by moving assets out of your estate, or to protect both sides of a family in a second marriage situation. These documents need to be carefully drafted, because of the fact that they are irrevocable.
INFORMATION FOR PREPARING YOUR ESTATE PLAN
Our information fact sheet will not only help our firm prepare your estate plan, but can also assist your agents under a POA, Personal Representatives or Trustees to manage your assets and liabilities in the event of incapacity or death. In addition, having names and addresses of key advisors helps make sure that these individuals are immediately made aware of your incapacity or death, so that your assets are protected. Please feel free to review and complete our Estate Planning Asset & Liability Information Sheet.
|