Wills
What is a will?
A will is a legal document which lists instructions regarding the distribution and management of your assets.
What goes into a will?
- Naming a guardian for your minor children
- Naming a personal representative who will pay your debts, close your accounts, and distribute your estate
- Distribution of personal property such as heirlooms you want passed down to your children
Benefits of having a will
- Comfort in knowing that you have named a guardian to care for your children in the event of untimely death
- Setting up financial provisions for your children's support through age 18 and beyond
Limiting the need for court involvement and thus, court costs in aspects of financial and physical care for your children
Trusts
What is a trust?
A trust is a legal document that can provide a means to hold and manage property. It can be custom designed for your situation. There are three people involved in a trust: the grantor (person creating the trust), the trustee (the person in charge of administering the trust in accordance with the trust terms), and the beneficiary (the person(s) for whom the trust assets will eventually be distributed to). A trustee should be someone whom you trust, who can handle the role of fiduciary, and who can carry the responsibility of managing the assets for the benefit of the beneficiaries.
Benefits of having a trust?
- Avoid probate costs
- Seamless transition after death to transfer assets to beneficiaries
- Some trusts can be used to lessen estate taxes.
What goes into a trust?
Any type of property such as cash, personal property or real estate, can be placed in a trust.
Power of Attorney
What is a POA?
A legal document in which an individual (the grantor) can grant another individual the power to manage financial affairs in the event the grantor is incapable of making decisions due to disability or incapacity
Benefits of a POA
- Your chosen power of attorney can gain access to your financial/insurance information in the event you cannot speak for yourself.
- By setting up a POA in advance, you avoid the need for court intervention, and thus court costs and lawyer's fees, to make sure that your finances are taken care of while you are incapacitated.
What happens if I don't have a POA?
Your loved ones may need to petition the court in order to communicate with your mortgage company, your insurance carriers and your bank.
Healthcare Directive
What is a HCD?
A Health Care Directive can insure your wishes for health care in the event you are incapacitated. In the HCD, you will be able to name a Health Care Agent who will be authorized to make your medical decisions should you become incapacitated. You should talk to those you have in mind to be your Health Care Agent before you draft the HCD to make sure they are willing and able to carry out your wishes.
Benefits of having a HCD
- Knowing YOUR wishes are stated clearly and must legally be honored
What happens if I don't have a HCD?
- Your next of kin (spouse, parent, adult child) will generally be allowed to decide your healthcare in the event you are incapacitated. That person may not know what your wishes are, or may not follow your wishes unless you have a HCD.
Review and Revise
When to review:
- Marriage/remarriage
- Death of a spouse
- Birth of children
- Inherited property
- Estate growth
- Estate law changes
- Divorce
- Health status change
- Move to another state
- Children's status changes
Revising
If you wish to change your will slightly, you may use a codicil, which is like an amendment, to make changes. If you wish to direct certain personal items to certain friends or relatives, you can draft a letter or list and keep it with your will.