After Seeing years of Probate Litigation and personal experiences with persons who have passed away without planning, I have come to learn that Estate Planning is crucial if you own any property. Unfortunately, anyone can pass away without warning. It is best to prepare for the worst parts of life in advance, so we can spare our loved ones the pains of making such decisions without our assistance.
Many people wait too long before having a will or trust created. Currently estates over $150,000 must go through the Probate Court. This means that what you have worked hard to own and could choose to give to your loved ones wiill be lost in legal fees to Court appointed lawyers and defending any challenges to the plan of your heirs and/or the state. Plus there will likely be capital gains taxes placed upon your heirs, which will be limited to relatives and not dear friends or organizations you may choose to support. Why do this to your family, when there are reasonably priced alternatives? I can help.
Wills are very technical documents which require proper witnessing and formats, or they are void. If you want someone to get a specific gift, or want to state your intent that one or more family members are not entitled to anything, now is the time. Without a proper Will, only family members can receive a benefit. If you want to give gifts to a non-spouse, a dear friend, or an organization now is your opportunity. Unless your requests are legally improper a Will ensures that your property is divided how you would like it to be. So if you have a special collection, like trains and your nephew loves trains, you can make sure your collection goes to the right place. Most people have their Will give the bulk of gifts to their Trust .
Trusts give the drafter great latitude in making conditional gifts. For example if you want your gift to go to someone at a certain age, it can often be done in a trust. A trust also allows you to direct care if you and/or your spouse become incapacitated. Far and away however, the reason why people favor trusts is that you can transfer property with the least amount of tax consequences available. Your loved ones will be grateful that you thought ahead.
Should one become incapacitated they cannot tell their doctor how to best care for them. If you have strong feelings on blood transfusions, resuscitation, ventilators and/or feeding tubes a Durable Power of Attorney allows you to select which loved one(s) will best care for you. Doctors and caretakers are bound to follow your instructions in these matters if clearly stated in the Durable Power of Attorney. While this may duplicate information in your trust, a trustee must obtain a conservatorship to direct your medical care, unless you plan ahead and have a Power of Attorney Drafted. With the document your loved one(s)can spare the time and expense of the conservatorship and immediately assist you.
Powers of Attorney are limited to being financial or medical and can be executed comprehensively or piecemeal as needed without voiding your Will or Trust. If you have a financial interest such as a business or a court case this instrument is highly recommended. Even if you just want your heirs to have instant access to your bank accounts, this is the way to go. Again, without this document, one must seek a conservatorship over your estate or petition to be named trustee before they act.
People who have strong feelings about burial, cremation or donation should consider having instructions made by way of trust and/or power of attorney. For example you may have a family plot that you want to be buried at. You may demand cremation rather than burial. You can even request that your body be donated to science. Once you are gone, your family may make this decision without you and be unaware of your actual choice in the matter.
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