ESTATE PLANNING

LAST WILL AND TESTAMENT

A will is a written direction controlling the disposition of property at death, this includes real property (like a house) and personal property (like jewelry). Through a will, you decide who gets your property instead of the law making the choice for you.

A Last Will and Testament is needed for all adults, and commonly recommended instead of a revocable trust with pour-over will for young adults, persons with high debts and low assets, and persons anticipating future life changes.

REVOCABLE TRUST + POUR OVER WILL

A revocable trust is a document (the “trust agreement”) created to manage lifetime assets and distribute the remaining assets after your death. The person who creates a trust is called the “grantor” or “settlor.” The person responsible for the management of the trust assets is the “trustee.” You can serve as trustee, or you may appoint another person, bank or trust company to serve as your trustee. The trust is “revocable” since you may modify or terminate the trust during your lifetime, as long as you are competent. Most trust agreements allow the grantor to withdraw money or assets from the trust at any time, and in any amount. If you become incapacitated, the trustee is authorized to continue to manage your trust assets, pay your bills, and make investment decisions. This may avoid the need for a court-appointed guardian of your property. 

Upon your death, the trustee (or your successor if you were the initial trustee) is responsible for paying all claims and taxes, and then distributing the assets to your beneficiaries as described in the trust agreement. Your assets, such as bank accounts, real estate and investments, must be formally transferred to the trust before your death to get the maximum benefit from the trust. This process is called “funding” the trust and requires changing the ownership of the assets to the trust. Assets that are not properly transferred to the trust may be subject to probate. However, certain assets should not be transferred to a trust because income tax problems may result. You should consult with an attorney, tax advisor and financial advisor to determine if your assets are appropriate for trust ownership.

A pour over will should always be drafted in conjunction with a trust. The pour over will directs that all assets held in the testator's personal name at death shall transfer to the trust. For persons who transferred a majority of their assets into the trust during their lifetime, this document may not affect much. However, for persons who leave numerous or major assets in their personal name, this document will be filed so the probate process can be undergone. 

ADVANCE DIRECTIVES

• Living Will - this document comes to life when you can no longer make decisions for yourself due to incapacity. Specifically, it gives instructions for end-of-life care, treatment options, organ donation, and more. 
• HIPAA Authorization - this document identifies the persons who you authorize to have access to your protected healthcare information, including medical records.
• Declaration of pre-need guardian - this document allows you to recommend a person to serve as guardian of your person and/or guardian of your property in the event you become mentally or physically disabled and can no longer manage your own affairs. 
• Designation of Healthcare Surrogate - this document names a person to make medical decisions for you when you can no longer make decisions for yourself due to incapacity.
• Do Not Resuscitate Order - this document is a form developed by the Department of Health to identify people who do not wish to be resuscitated in the event of respiratory or cardiac arrest. It is generally utilized by persons whom are bedbound, or anticipate becoming bedbound, to identify their election for healthcare providers and first responders in the event of a medical emergency. It must be signed by the individual's physician. 

POWER OF ATTORNEY

A power of attorney is a legal document delegating authority from one person to another. In the document, the maker of the power of attorney (the “principal”) grants the right to act on the maker’s behalf as that person’s agent (the "agent"). What authority is granted depends on the specific language of the power of attorney. A person giving a power of attorney may make it very broad or may limit it to certain specific acts. 

TRANSFER ON DEATH PROVISIONS

An automatic transfer on death from you to your trusted person or entity can be accomplished with: real property, ownership interest in an LLC, and financial accounts.