Estate Planning Tools

Wills A will is a legal document that tells how you want your estate to be distributed after your death. A will is a legal document that tells how you want your estate to be distributed after your death. A will also names a person to act as personal representative of the estate, states preferences for guardians of minor children, and lists powers given to representative, guardians, or trustees. A will also names a person to act as personal representative of the estate, states preferences for guardians of minor children, and lists powers given to representative, guardians, or trustees.

Simple Will A simple will is a short ( one or two page) document that lists spouse and children and provides how each shall inherit an estate. A simple will is a short ( one or two page) document that lists spouse and children and provides how each shall inherit an estate. A will must be witnessed by two persons not mentioned in the will. A will must be witnessed by two persons not mentioned in the will. Witnesses must be 18 or older, not related, and able to attest to the mental competency of the person making a will at the time it is written. Witnesses must be 18 or older, not related, and able to attest to the mental competency of the person making a will at the time it is written.

Trust Will A trust will is a long and complex document that creates a trust for the benefit of a person who cannot take possession of assets. A trust will is usually prepared by a lawyer. A trust will is a long and complex document that creates a trust for the benefit of a person who cannot take possession of assets. A trust will is usually prepared by a lawyer. A trust is many pages long and lists specific provisions for holding property, assets, and money for minor children or others. A trust is many pages long and lists specific provisions for holding property, assets, and money for minor children or others. A trustee is named to manage the money, and all duties and powers as described. The trustee may be bank, a financial institution, or a person. A trustee is named to manage the money, and all duties and powers as described. The trustee may be bank, a financial institution, or a person. The testator (person who makes the will) lists all persons whom may have a claim. The testator (person who makes the will) lists all persons whom may have a claim.

TRUSTEES DUTIES Trustees are required, at the least, to carry out the following duties: Trustees are required, at the least, to carry out the following duties: The Duty to Know the Trust Deed. The Duty to Know the Trust Deed. The Duty to Know What the Trust Assets and Liabilities Are, the Actions of Former Trustees, and the State of the Trust. The Duty to Know What the Trust Assets and Liabilities Are, the Actions of Former Trustees, and the State of the Trust. The Duty to Advance the Trust Purposes: Fiduciary Duties of Honesty Loyalty, and Acting in the Best Interests of the Trust. The Duty to Advance the Trust Purposes: Fiduciary Duties of Honesty Loyalty, and Acting in the Best Interests of the Trust. Duties of Care, Skill and Diligence Duties of Care, Skill and Diligence The Duty to be Impartial between beneficiaries. The Duty to be Impartial between beneficiaries. The Duty to not delegate Trusteeship Duties. The Duty to not delegate Trusteeship Duties. The Duty to Carry out Duties Without Payment. The Duty to Carry out Duties Without Payment. The Duty to not make a personal profit from Trust Funds. The Duty to not make a personal profit from Trust Funds. The Duty to Pay Money to the Right People. The Duty to Pay Money to the Right People. The Duty to Keep and Render Proper Accounts and Supply Full Information. The Duty to Keep and Render Proper Accounts and Supply Full Information. The Duty to Invest Promptly and Prudently. The Duty to Invest Promptly and Prudently. The Duty to Take Advice. The Duty to Take Advice. Miscellaneous Duties Miscellaneous Duties The Duty to Sell Wasting Property ie property which deteriorates. The Duty to Sell Wasting Property ie property which deteriorates. The Duty to Insure the Trust Assets. The Duty to Insure the Trust Assets. The Duty to Keep Trust Assets and Securities Safe. The Duty to Keep Trust Assets and Securities Safe. The Duty to Keep an Inventory of Assets. The Duty to Keep an Inventory of Assets. The Duty to Invest Within a Reasonable time. The Duty to Invest Within a Reasonable time. The Duty to Repair Trust Property. The Duty to Repair Trust Property.

Holographic will A holographic will is one written in persons own handwriting. A handwritten will is legally valid in 19 states and should be witnessed just as one typed and prepared by a lawyer. A holographic will is one written in persons own handwriting. A handwritten will is legally valid in 19 states and should be witnessed just as one typed and prepared by a lawyer. When a person dies without a will, he or she is said to be intestate. When a person dies without a will, he or she is said to be intestate.

Power of Attorney and Trust A power of attorney is a legal document authorizing someone to act on your behalf when you need someone to handle your personal affairs or attend to your need. A power of attorney is a legal document authorizing someone to act on your behalf when you need someone to handle your personal affairs or attend to your need. A trust is a legal document giving a person or institution ( the trustee) custody of someone elses property or money (trustor), for the ultimate distribution to another person (called the beneficiary). A trust is a legal document giving a person or institution ( the trustee) custody of someone elses property or money (trustor), for the ultimate distribution to another person (called the beneficiary). A trust can exist during the lifetime of the trustor. This type of trust is called inter vivos, or a living trust. A trust can exist during the lifetime of the trustor. This type of trust is called inter vivos, or a living trust.

Taxation of estates Federal and state governments levy various types of taxes that must be considered in planning your estate. Three major ones are estate, inheritance, and gift taxes. Federal and state governments levy various types of taxes that must be considered in planning your estate. Three major ones are estate, inheritance, and gift taxes.

Federal Estate Taxes The federal government levies an estate tax on the value of an estate. An estate must be worth more that $600,000 to be subject to this tax The federal government levies an estate tax on the value of an estate. An estate must be worth more that $600,000 to be subject to this tax State Inheritance Taxes Heirs pay inheritance taxes on property received.

Federal Gift Taxes The federal government levies a tax on the privilege of making gifts to others. You can give $10,000 per person per year without having to pay a gift tax. The federal government levies a tax on the privilege of making gifts to others. You can give $10,000 per person per year without having to pay a gift tax. A gift tax is levied on the person giving-not receiving- a gift exceeding $10,000 a year. A gift tax is levied on the person giving-not receiving- a gift exceeding $10,000 a year.