Friday, August 27, 2010
Estate Planning Documents Overview: Part 1
3:43 pm hst
BASIC ESTATE PLANNING:
The documents comprising a basic estate plan are a revocable living trust, a pour-over will,
an advanced health care directive, a living will and a durable or springing power of attorney for financial or real property
REVOCABLE LIVING TRUST
The most common uses for the Revocable Living Trust is to avoid probate and to
control distributions to beneficiaries. The Revocable Trust is private and will not be a public record like a Will,
which is filed with the court. Property held in the name of the trust will not be subject to probate proceedings.
you transfer your assets (Real and Personal Property) into the Trust it is called funding the Trust. With a Revocable
Living Trust usually the Grantor or Creator of the Trust acts as the initial trustee and should that person become incapacitated
the named successor trustee takes over and manages the trust assets on your (Grantor's) behalf. Upon you death the successor
trustee distributes the assets to the beneficiaries that you designated.
A pour-over will is used
in conjunction with a Revocable Living Trust and is intended to catch any assets that were overlooked when funding the trust
or were not transferred for any other reason.
DURABLE/SPRINGING POWER OF ATTORNEY FOR PROPERTY
Power of Attorneys
are added to the basic estate plan to provide for management and handling of your non-trust assets by your designated individual.
This allows that person to pay your bills from you personal bank account, transfer property to your trust, etc. if you become
ADVANCED HEALTH CARE DIRECTIVES
This documents allows you to designate an agent to make health
care decisions for you in the event that you become incapacitated. The Advanced Health Care Directive should express
your preferences regarding health care and artificial life-support.
DON'T FORGET THE HIPAA FORM TO DESIGNATE AN AGENT
FOR OBTAINING YOUR MEDICAL RECORDS AND INFORMATION.