Wills and Estate Planning
On a daily basis you make your own decisions regarding your finances, property, and health care. However, what would happen should you die, become disabled, or incompetent? How would these decisions be carried out and who would make them? The only way to assure these important matters will be handled according to your wishes is through Estate Planning. Without a plan these decisions will be governed by state law and may not reflect your actual wishes. Basic estate plans usually consist of a Will or a Revocable Living Trust, Durable Power of Attorney for Finances and Property, Power of Attorney for Health Care, and a Living Will.
However, no one likes to dwell on the prospect of their own death. Many people rationalize that estate plans are for someone else and not them because either they are too young or they don't have a lot of money or assets to consider an estate plan a worthwhile investment. Yet make no mistake about it, estate planning is for everyone regardless of age or net worth and the following list clearly illustrates this fact.
1. Loss of capacity. What if you become incompetent and unable to manage your own affairs? Without a plan the courts will select the person to manage your affairs. With a plan, you pick that person (through a power of attorney).
2. Minor children. Who will raise your children if you die? Without a plan, a court will make that decision. With a plan, you are able to nominate the guardian of your choice.
3. Dying without a will. Who will inherit your assets? Without a plan, your assets pass to your heirs according to your state’s laws of intestacy (dying without a will). Your family members (and perhaps not the ones you would choose) will receive your assets without benefit of your direction or of trust protection. With a plan, you decide who gets your assets, and when and how they receive them.
4. Blended families. What if your family is the result of multiple marriages? Without a plan, children from different marriages may not be treated as you would wish. With a plan, you determine what goes to your current spouse and to the children from a prior marriage or marriages.
5. Children with special needs. Without a plan, a child with special needs risks being disqualified from receiving Medicaid or SSI benefits, and may have to use his or her inheritance to pay for care. With a plan, you can set up a Supplemental Needs Trust that will allow the child to remain eligible for government benefits while using the trust assets to pay for non-covered expenses.
6. Keeping assets in the family. Would you prefer that your assets stay in your own family? Without a plan, your child’s spouse may wind up with your money if your child passes away prematurely. If your child divorces his or her current spouse, half of your assets could go to the spouse. With a plan, you can set up a trust that ensures that your assets will stay in your family and, for example, pass to your grandchildren.
7. Retirement accounts. Do you have an IRA or similar retirement account? Without a plan, your designated beneficiary for the retirement account funds may not reflect your current wishes and may result in burdensome tax consequences for your heirs (although the rules regarding the designation of a beneficiary have been eased considerably). With a plan, you can choose the optimal beneficiary.
On a daily basis you make your own decisions regarding your finances, property, and health care. However, what would happen should you die, become disabled, or incompetent? How would these decisions be carried out and who would make them? The only way to assure these important matters will be handled according to your wishes is through Estate Planning. Without a plan these decisions will be governed by state law and may not reflect your actual wishes. Basic estate plans usually consist of a Will or a Revocable Living Trust, Durable Power of Attorney for Finances and Property, Power of Attorney for Health Care, and a Living Will.
However, no one likes to dwell on the prospect of their own death. Many people rationalize that estate plans are for someone else and not them because either they are too young or they don't have a lot of money or assets to consider an estate plan a worthwhile investment. Yet make no mistake about it, estate planning is for everyone regardless of age or net worth and the following list clearly illustrates this fact.
1. Loss of capacity. What if you become incompetent and unable to manage your own affairs? Without a plan the courts will select the person to manage your affairs. With a plan, you pick that person (through a power of attorney).
2. Minor children. Who will raise your children if you die? Without a plan, a court will make that decision. With a plan, you are able to nominate the guardian of your choice.
3. Dying without a will. Who will inherit your assets? Without a plan, your assets pass to your heirs according to your state’s laws of intestacy (dying without a will). Your family members (and perhaps not the ones you would choose) will receive your assets without benefit of your direction or of trust protection. With a plan, you decide who gets your assets, and when and how they receive them.
4. Blended families. What if your family is the result of multiple marriages? Without a plan, children from different marriages may not be treated as you would wish. With a plan, you determine what goes to your current spouse and to the children from a prior marriage or marriages.
5. Children with special needs. Without a plan, a child with special needs risks being disqualified from receiving Medicaid or SSI benefits, and may have to use his or her inheritance to pay for care. With a plan, you can set up a Supplemental Needs Trust that will allow the child to remain eligible for government benefits while using the trust assets to pay for non-covered expenses.
6. Keeping assets in the family. Would you prefer that your assets stay in your own family? Without a plan, your child’s spouse may wind up with your money if your child passes away prematurely. If your child divorces his or her current spouse, half of your assets could go to the spouse. With a plan, you can set up a trust that ensures that your assets will stay in your family and, for example, pass to your grandchildren.
7. Retirement accounts. Do you have an IRA or similar retirement account? Without a plan, your designated beneficiary for the retirement account funds may not reflect your current wishes and may result in burdensome tax consequences for your heirs (although the rules regarding the designation of a beneficiary have been eased considerably). With a plan, you can choose the optimal beneficiary.
Last Will and Testament
A will is a written legal document that says what you want to happen to your estate. Your estate may include your home, cars, personal property (such as jewelry, furniture, clothing, etc.), as well as financial assets such as bank accounts, stocks, bonds. However, property that has a separate beneficiary designation (such as life insurance, transfer on death, or payable on death accounts) go directly to the beneficiaries you named on the appropriate forms or accounts. Furthermore, property that is jointly owned goes to the surviving owner(s).
In addition to providing the disposition of your estate upon your death, a will can also designate a guardian for your children while they are still minors, if your spouse is unable to care for them. The guardian you choose is the person legally responsible for raising and caring for your children. If you don't have a will or a guardian nominated in your current will, the courts will decide who becomes guardian of any minor children.
Lastly, a will allows you to appoint a personal representative. A personal representative is the person who will pay your bills and taxes and distribute your estate to your beneficiaries. Being named as a personal representative comes with a high degree of responsibility, therefore It is wise to choose someone you trust who will accurately carry out your wishes.
If you are questioning whether or not you need to have a will, think about the assets you own or possessions you have and ask yourself if you care about who will receive those assets or possessions. If you answered in the affirmative, then it is a good time to write a will. Also, anyone who has minor children should definitely have a will.
Durable Power of Attorney for Finances and Property
A durable Power of Attorney for Finances and Property is a legal document that authorizes another person to act for you in financial matters. The person you choose to act on your behalf is called an agent. Depending on what rights you give to your agent, they may include such things as being able to pay your bills and taxes, sign legal documents, buy and sell real estate all on your behalf. A durable power of attorney can take effect immediately or you can specify that it becomes effective at a later date or if you were to become incapacitated or incompetent.
Durable Power of Attorney for Health Care
A durable Power of Attorney for Health Care is a legal document authorizing another person of your choosing to make health care decisions for you in the event that you are unable to make them yourself. Not even your spouse or domestic partner can make these decisions for you without written authorization. The person you choose will be your health care agent and this person will work with doctors and health care providers to make sure you get the kind of medical care you wish to receive.
A Living Will is a separate legal document that allows you to state in writing your decisions and preferences about life-prolonging medical treatment. Even though a living will can be executed as a separate document it may be integrated with your durable power of attorney for health care for ease of execution.
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A will is a written legal document that says what you want to happen to your estate. Your estate may include your home, cars, personal property (such as jewelry, furniture, clothing, etc.), as well as financial assets such as bank accounts, stocks, bonds. However, property that has a separate beneficiary designation (such as life insurance, transfer on death, or payable on death accounts) go directly to the beneficiaries you named on the appropriate forms or accounts. Furthermore, property that is jointly owned goes to the surviving owner(s).
In addition to providing the disposition of your estate upon your death, a will can also designate a guardian for your children while they are still minors, if your spouse is unable to care for them. The guardian you choose is the person legally responsible for raising and caring for your children. If you don't have a will or a guardian nominated in your current will, the courts will decide who becomes guardian of any minor children.
Lastly, a will allows you to appoint a personal representative. A personal representative is the person who will pay your bills and taxes and distribute your estate to your beneficiaries. Being named as a personal representative comes with a high degree of responsibility, therefore It is wise to choose someone you trust who will accurately carry out your wishes.
If you are questioning whether or not you need to have a will, think about the assets you own or possessions you have and ask yourself if you care about who will receive those assets or possessions. If you answered in the affirmative, then it is a good time to write a will. Also, anyone who has minor children should definitely have a will.
Durable Power of Attorney for Finances and Property
A durable Power of Attorney for Finances and Property is a legal document that authorizes another person to act for you in financial matters. The person you choose to act on your behalf is called an agent. Depending on what rights you give to your agent, they may include such things as being able to pay your bills and taxes, sign legal documents, buy and sell real estate all on your behalf. A durable power of attorney can take effect immediately or you can specify that it becomes effective at a later date or if you were to become incapacitated or incompetent.
Durable Power of Attorney for Health Care
A durable Power of Attorney for Health Care is a legal document authorizing another person of your choosing to make health care decisions for you in the event that you are unable to make them yourself. Not even your spouse or domestic partner can make these decisions for you without written authorization. The person you choose will be your health care agent and this person will work with doctors and health care providers to make sure you get the kind of medical care you wish to receive.
A Living Will is a separate legal document that allows you to state in writing your decisions and preferences about life-prolonging medical treatment. Even though a living will can be executed as a separate document it may be integrated with your durable power of attorney for health care for ease of execution.
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Here at Richman Law Office, I can help you with your basic estate planning needs. I offer basic estate planning packages as well as individual estate planning documents for a reasonable flat fee. If you have any questions or want to setup an initial consultation please contact me so we can discuss your options and find the best solution for your needs in order to provide you and your loved ones peace of mind.
