Typical Estate Planning Documents for All Estates Regardless
of Size
Last Will and Testament (Will)
Advantages of a Will
Powers of Attorney
Living Will
Trust Agreements
Living Revocable Trusts
Advantages of a Living
Trust
Marital Property Agreements
Powers of Attorney
Powers of Attorney for financial and health care purposes
name the person who may make decisions for you in the event
you are incapacitated. This avoids delays in asset management
as well as the cost and potential embarrassment of a court
proceeding.
Living Will
A Living Will sets forth the type and extent of life support
measures to be taken in the event you cannot make these
decisions, and saves family members from having to make
difficult and often painful decisions during a time of stress.
Trust Agreements
A Trust may be created during life (an intervivos trust)
or by your will (a testamentary trust) to manage your property,
manage assets for minor or incompetent beneficiaries, or
provide for the needs of a second spouse during his/her
lifetime with assets passing to the children of a first
marriage upon the second spouse’s death.
Living Revocable Trusts
A Living Trust (also known as a revocable trust) is a trust
created during your lifetime to manage your property during
lifetime and to pass it to designated beneficiaries upon
your death without formal probate proceedings. A Living
Trust does not, in and of itself, save taxes, but it can
be drafted in a manner that minimizes taxes (as can a Will).
Advantages of a Living Trust
-
Ownership/Control
You, as trustee, continue to own and control your assets
for as long as you are living and competent.
-
Revocable
A Living Trust is easily amended or terminated.
-
Smooth Transition
Your successor trustee steps in upon your death or incapacitation
without the need for court intervention or potential
publicity.
-
Avoids Probate
Assets transferred to the Trust during lifetime will
avoid probate. This is especially beneficial for out-of-state
real estate which could otherwise result in a probate
proceeding in that state as well as in the state of
residency. Any assets not transferred to the Trust during
life will be probate assets and will pass according
to the terms of your Will.
-
Avoids Court Accountings
Annual court accountings along with accompanying legal
fees are not required for living or revocable trusts,
but are required for testamentary trusts.
Marital Property Agreements
A Marital Property Agreement classifies property as marital
or individual and should be a part of most estate plans
for married couples (especially in second marriage situations
where there are children from the first marriage) to avoid
unintended dispositions resulting from the unanticipated
classification of property. You should discuss this issue
with your attorney as a part of your estate planning.
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