WILLS, TRUSTS, & ESTATE PLANNING
Estate Planning is very important to your loved one’s future. Estate planning is the process of organizing your financial and personal interests so that your wishes are met with a minimum of inconvenience and expense to your family. At Alison Grant, Attorney at Law we can help you with all your Estate Planning needs, such as:
- Last Will & Testaments
- Living Wills / Directives to Physicians
- Health Care Power of Attorney
- Durable Power of Attorney
- Revocable & Irrevocable Trusts
- Guardians for Minors
Most people wonder if they really need a Will – perhaps they think they don't have enough assets to bother with a Will. Some people think that by having a Will it forces their heirs to go through a costly Probate process. The truth is quite the contrary; a Will is a good idea for just about everyone.
A Will is a document in which a person declares what is to be done with their assets at the time of their death. If you die without a Will it is called dying intestate. If you die intestate, state law controls the distribution of your assets and they may be distributed in a manner inconsistent with your wishes. Furthermore, your heirs are required to go through the Probate process and there is no reason to think that this process is easier or less expensive just because you did not leave a Will. Most states require, in terms of intestacy, the administrator of an estate to post a surety bond during the administration of the estate. However, if you leave a Will, you may choose who will administer your estate and you can dispense with the posting of a surety bond.
If you have minor children there is no question you need a Will. If you die intestate and have minor children the court must set up a conservatorship to manage your children's share of the assets. This means that a judge, and not you, decides who manages your minor children’s future. Your children are not entitled to receive their shares of your estate until they are 18 years of age. Upon reaching the age of 18 your children then receive their portion of your estate outright regardless of whether they are equipped to manage their finances effectively. If you have a Will you decide who will manage your children’s inheritance and you choose the age at which it is distributed to them.
A Living Will is a legal document in which people make their wishes known regarding life prolonging medical treatments. It is also known as an advance directive, health care directive, or a directive to physicians. A Living Will informs your health care providers and your family members about your desires for medical treatment in the event you are incapacitated.
A Living Will is only used when your ultimate recovery is hopeless. For situations where you are merely incapacitated and unable to speak for yourself, but your ultimate demise is not an issue, you should have a Health Care Power of Attorney. This is a legal document, which gives some person of your choice the authority to make health care decisions on your behalf when you are incapacitated. The person designated in the Health Care Power of Attorney makes decisions on your behalf according to your wishes. Therefore, it is vital that you discuss what these wishes are with the person named in the Health Care Power of Attorney since these wishes are not delineated in the document itself. Furthermore, you must make sure your personal physician and/or family members are made aware of the existence of the Health Care Power of Attorney as the document is useless if no one knows about it.
If you should become mentally or physically disabled how will you take care of your day-to-day affairs? This can be accomplished with a Financial Durable Power of Attorney. This document allows a person, who you designate, to manage your financial affairs on your behalf. Conversely, if you do not have a Financial Durable Power of Attorney then your family members will be required to request a court supervised Guardianship. In general, a Financial Durable Power of Attorney allows the person you designate, otherwise known as your agent, to do anything you could normally do. Alison Grant, Attorney at Law can draft any Power of Attorney to meet your unique needs.
What is a Trust? A Trust is a legally created entity similar to a corporation. The Trust establishes clearly defined guidelines for management of property and assets and for distribution of benefits to beneficiaries identified by the Trust. If you choose to create a Trust, it is best to also create what is called a Pour-Over Will. This type of Will provides for the distribution of any property that is not included in the Trust and also allows you to name a guardian for any minor children.
Here are some advantages and disadvantages to consider regarding Wills and Trusts:
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ADVANTAGES:
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DISADVANTAGES:
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Trust:
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A trust is a cost-saving device in most states and allows for avoidance of Probate.
If you own property in another state it eliminates the need for Probate in that state.
If you become incapacitated, management of property is already in the control of the Trust and there is no need to appoint a Guardian.
Protects your privacy since it is not a matter of public record. Security in knowing your beneficiaries are taken care of per your wishes.
No need to employ an attorney upon distribution of your estate. |
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Setting up the Trust requires much paperwork and is expensive.
You must transfer ownership of the property into the Trust.
Refinance may be difficult.
Creditors do not have a final cut-off date to file claims.
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Wills:
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Set-up is simpler than a Trust and less expensive.
Claims by creditors must be brought within a specific time frame.
You may name a Guardian for your minor children.
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Once the Will is in Probate it is a matter of public record.
Probate is slow and can be expensive in certain cases.
Does not provide for the transfer and management of property if you become incapacitated.
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Alison Grant, Attorney at Law encourages clients to include a Living Will, Health Care Power of Attorney, and Financial Durable Power of Attorney at the same time they prepare their Wills. It is always a good idea to update your Estate Plan every few years or in the event of a significant life change such as marriage, divorce, birth of children or adoption. Furthermore, your wishes as to the disposition of your assets may change over the years and you would need to update all documents in correlation with these changes.
If you need a Will, Trust or Estate Plan please download the questionnaire below to fill out and bring to your initial consultation.
