ESTATE PLANNING
WILLS, TRUSTS, & OTHER
ESTATE PLANNING DEVICES
A great deal of confusion, animosity and pain can be avoided for ones heirs, of a well thought out estate plan is done by an individual prior to his or her death. Uncertainty as to who gets Mom's wedding ring, Dad's watch or Aunt Bea's broach can be avoided if we take the time to let our heirs, through a will and other documents, what our wishes are. Those documents are
- a will
- a trust
- durable power of attorney
- a medical power of attorney
A.) Will: In a will you can provide for who gets what portion of your property which you have, when they may receive it, and how they receive it. You can give instructions on whom you want to be your children's guardians of their person should something happen to both Mom and Dad. You can direct who will protect and administer their inheritance if they are not old enough or wise enough to take care of their money or property in the event of your untimely death. You can tell your heirs what burial instructions you want them to know about, what funeral home you have contracted with and what cemetery you have retained. This is just the beginning of things you can do if you have a will. Children and other loved ones try to do what you would want them to do. A will is created to enable them to learn your wishes and not have to guess about what those wishes are.
B.) Trusts: A trust is an estate planning device which gives the person responsible for handling the estate after the death of that person. It can keep most of the property out of the probate court proceedings, can be distributed to heirs faster and may save a great deal in attorney fees as well as in taxes. A living trust is not a document which should be undertaken without the help of an attorney. It can do great things, but if not done properly it can really screw things up. If not done correctly, you can wind up in Probate Court for a far greater period of time than would have been spent had you done nothing. Attorney fees can be far higher than they would otherwise have been.
C.) Power of Attorney: A durable Power of Attorney gives you the ability to have someone you trust (a wife, husband, brother, sister etc) the ability to act on your behalf when you are not able to act yourself. You don't have to have a good reason. However, examples of reasons would include being out of town when an event requiring your signature occurs, being ill or otherwise unable to attend a real estate closing, bank loan distribution meeting or when a scheduling conflict happens.
A Power of Attorney assumes you are competent when you sign the document. Your representative (referred to as an attorney in fact) is designated to act on your behalf when you are unable to be present for what ever reason. The powers given in this document can be quite general or they can be very specific. Often when real estate is involved a power of attorney is granted only for the purpose of that a specific transaction.
A power of attorney can allow someone to act for you over a period of years. They can be very broad in allowing some to act. These types of documents are often referred to as a Durable Power of Attorneys. On the other hand the power could be quite limited, anticipating a specific action at a specific time, and no more. In short, it can be tailored to your specific needs.
D.) Medical Power of Attorney: A Medical Power of Attorney is usually referred to as a Living Will. That is something of a misnomer since a will directs a representatives actions after death and not before,
A Medical Power of Attorney provides medical instructions when one is unable to give medical instructions. It enables a husband or wife, a brother or close friend to make medical decisions on your treatment when you can't. It further sets foth guidelines for your Doctor or care provider on what actions should be taken on your behalf when you can't give them those directions yourself.
We have all heard the problems surrounding artificial life supports. When and how long they should be maintained present ethical issues for the Doctor and for the family. Specific instructions from the patient, as contained in the medical power of attorney, may be able to resolve many if not all of these issues.
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