What is Estate Planning?
Estate planning is not just limited to preparing a will or a trust to
dispose of your property upon your death, it also includes making end of
life decisions or appointing someone that will speak for you and handle
your business when you are not able to. These plans can be simple
or complex. Either way, they are simply too important to rely on
forms that are downloaded from the internet or purchased at an office
supply store. They are important documents that should be prepared
by a professional.
I will meet with you to help you make an estate plan that will fit
your needs. I will then prepare the documents that are required to
make your wishes a reality. Here are some of the documents that
you may need and what they do.
Power of Attorney - This is a document that allows someone
else to conduct business in your name. They only have the
authority that you give them. So you can make it as broad or
narrow as you wish. You can also determine if it takes effect only
after you have lost capacity or if it grants authority to act now.
Will - This is a document that disposes of your estate by
directing that your debts are paid and giving your possessions to the
people that you designate. This is in the form of a "gift" in that
you no longer have control over the thing once you have given it away.
Advanced Directives to Physicians - This document is
also called a "living will". It expresses your desires concerning
continuing care if you are afflicted with a terminal disease or are
persistently unconscious. This document also allows you to appoint
someone to speak for you on those matters.
Final Wishes - This document reflects your choices about where
you might want to live out your final days. It also expresses your
wishes about what kind of funeral you would like - if any - and your
wishes concerning the disposition of your remains (buried or cremated).
Trust - By using a trust, you are able to control your assets
after your death. This is a great way to distribute money to a
child or grandchild, while limiting the purpose that the money can be
used (buy their first house, pay for education, etc). It can also
be more of an allowance instead of a lump sum gift. It can
preserve revenue producing assets, such as mineral interests or land or
rental property and provide that for the management of those things and
the continued distribution of profits.
Transfer on Death Deed - Transfers real property to someone
without giving them an interest in the property while you are alive.
Unlike a regular deed, it is also freely revocable at any time.
What is Probate?
Probate is the legal process for the distribution of
an estate that takes place under the Court's supervision. It is
not a scary thing or something that is incredibly costly. However,
there are statutory time frames and waiting periods that can make this
process seem slow. If there is no will, the process is governed by
law and will require paying the debt of the deceased and a distribution
to the heirs of the deceased in accordance with
statute. A will can change this by leaving certain specific
things to specific people or not giving some people anything
(disinheriting them). The Personal Representative is the person
who is in charge of the estate and is responsible for gathering the
assets of the estate, paying the expenses and debts, and then
distributing the estate. The Personal Representative is
responsible for making an initial inventory of the property in the
estate and a final accounting showing what monies have been spent and
the disposition of all of the property in the estate. Once that
accounting is approved by the Court, the Personal Representative is
discharged.
The thing that can make a probate slow and costly is
the fighting that sometimes occurs between family members over the
distribution of the property. With proper estate planning, the
potential for this fighting can be minimized or eliminated completely.
Come talk to John Dunn and he will show you how.
