Estate Planning is the process by which a family or individuals implement a plan regarding the management, protection, and ultimate transfer of assets in preparation of death. It also includes the nomination of individuals or institutions to assist with both medical and financial decisions. Every estate plan should include a Will or Trust, Advance Directive, Medical and Financial Powers of Attorney.

1. Peace of Mind
2. Blended Families
3. Minor Children
4. Avoid Probate Court
5. Intestacy (dying without a Will)

Generally, everyone over the age of eighteen years needs some form of estate planning. The complexity of one’s estate planning varies depending on the individual’s situation and overall wishes.

Should you pass without a Will or Trust, your assets will go to your closest relatives under the intestate succession laws of your State of domicile. The distribution depends on whether you are married, the duration of your marriage, and if you have children. You can combat these intestate succession laws by creating an estate plan so that you are making these important decisions concerning your assets rather than the default laws of your State.

A Will, often referred to as a “Last Will and Testament”, is a legal declaration by which a person provides for distribution of one’s property at death. It also includes instructions on your final arrangements, appointment of a Personal Representative, and Guardian for minor children.

A person, appointed by one’s Will or the court, to administer the decedent’s estate. A Personal Representative is commonly referred to as an Executor.

A written legal document that allows a third party or trustee, the power to hold and manage your assets for your benefit or for the benefit of another. There are various types of trusts such as Revocable Trust, Irrevocable Trust, Testamentary Trust, Special Needs Trust, Charitable Trust, Asset Protection Trust, Bypass Trust, etc.

A Trustee is a person or organization who acts as the custodian of assets held in a trust. The Trustee is responsible for managing and administering trust funds in accordance with the terms of the Trust. All Trustees are fiduciaries which means every decision the Trustee makes must be made in the best interests of both the current and future beneficiaries of the Trust Agreement.

Although both documents provide for instructions as to the management and distribution of your assets, a Will is not effective until death while a Trust is immediately effective upon execution.

A Trust is a private document while a Will must be admitted to probate (a public forum) to administer your estate. A properly funded Trust can also help you avoid probate while a Will cannot.

Probate is the court-supervised legal process for opening an estate, admitting one’s Will (if applicable) and appointing a Personal Representative. The Personal Representative is thereafter in charge of settling the decedent’s estate and more specifically, locating and valuing assets, notifying creditors, settling any debts, ensuring the filing of appropriate tax returns, and distributing assets in accordance with the Will or intestacy laws. The court mandates certain requirements and deadlines for each task in the probate process.

A Power of Attorney is a legal document that appoints an Agent to make decisions for you in the event you are disabled or become incapacitated.

There are two types of Powers of Attorney. A Medical Power of Attorney allows you to name someone called a health care proxy, attorney-in-fact, health care agent, or health care surrogate to oversee your health care decisions should you be unable to do so, either permanently or temporarily.

A Financial Power of Attorney appoints an Agent to make financial decisions on behalf of another. You have the ability limit your Agent’s power to specific areas or you can give broad power to your Agent Powers include – real estate, filing your taxes, banking, applying to Social Security benefits, etc. Your power of attorney is obligated by law to follow your instructions and always act in your best interest. Your power of attorney is acting as a fiduciary regarding your financial decisions.

A beneficiary is the person or entity that is legally designated to receive the benefits of a financial account. Some financial products allow you to nominate a primary and contingent beneficiary on an account.

Your Will only provides instructions for how you wish to distribute assets in your estate. A beneficiary named on an account will receive that asset. As such, a beneficiary designation supersedes what is in your Will. Therefore, it is essential to ensure that all beneficiary designations are accurate and coincide with your distribution plan.

A legal procedure by which a court seeks “to protect those who, because of illness or other disability, are unable to care for themselves”. A “disabled person” refers to an adult who has been judged by a court to be unable to manage one’s property and therefore needs a guardian of the property. A “disabled person” also refers to an adult who has been judged by a court to be unable to provide for one’s daily needs sufficiently to protect one’s health or safety and therefore needs a guardian of the person. A guardianship can also be sought for a minor.

As a minimum, you should review your estate plan every two to three years to ensure it still accurately reflects your wishes and your agents named are still the most appropriate choices. Life change events such as a birth, death, marriage, or divorce warrant updating your estate plan immediately.