ESTATE PLANNING MY LIFE MARRIED

What is Estate Planning Estate Planning is the preparation of a plan of administration and disposition of one’s estate using either a will, trusts, gifts, power of attorney and or a combination of these. Attempts to eliminate uncertainties over the will and eliminate going to probate. Maximize the value of the estate by reducing taxes and other expenses. It’s your call! Can involve your family, other individuals and, in many cases, charitable organizations or institutions of your choice.

Estate Planning determines: How and by whom your assets will be managed for your benefit during your lifetime if you ever become unable to manage them yourself. When and under what circumstances it makes sense to distribute your assets during your lifetime. How and to whom your assets will be distributed after your death. How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become unable to care for yourself. Performed in front of witnesses and an attorney.

4 Components to successful Estate Planning Create a Will: In a will, you state who you want to inherit your property and name a guardian to care for your young children should something happen to you and the other parent Set up Health Care Directives: Writing out your wishes for health care can protect you if you become unable to make medical decisions for yourself. Health care directives include a living will and a power of attorney for health care, which gives someone you choose the power to make decisions if you can't Appoint a financial Power of Attorney: You can give a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs. Purchase Life Insurance: If you have young children , own a house, or you may owe significant debts or estate taxes when you die, life insurance may be a good idea.

Power of Attorney – Many Types Power of Attorney - the authority to act for another person in specified or all legal or financial matters. A Power of Attorney has to be done as a legal document. This should be a person that you trust without question! Durable Medical Power of Attorney – Durable Medical Power of Attorney is a Power of Attorney for specific items regarding medical decisions. Our son is our Medical Power of Attorney. This is something that is done in advance of ill health or your death. Financial Power of Attorney - You appoint a trusted person to handle your finances and property if you become incapacitated and unable to handle your own financial affairs.

What is a Trust? A trust is to keep your estate out of probate after your death. A legal plan by which the trustor places assets in trust for a beneficiary. It controls how you want your money spent. My mother-in-law placed her home, her bank accounts, and all her assets in trust so her 3 children would not have to deal with a will and probate court.

A Will vs. a Trust The main difference is how your estate is handled. The main difference between a Trust and a Will is the fact that your property won't go through probate when you die. Probate: The process of legally establishing the validity of a will before a judge. A trust is a property management arrangement in which one person (the trustee) manages assets for the benefit of another person (the beneficiary). Trusts are usually more expensive, but they do not require going through probate (the courts). A Will is a legal tool, effective only after its maker dies, that provides evidence of the maker’s wishes. In the Will, its maker names specific heirs, defines what they will receive, and appoints an Executor to handle the work. Wills are usually less expensive but require probate (going through the court system).