ESTATE PLANNING and ADMINISTRATION

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(1) Will

(2) Living Trust

(3) Health Care Directive

(4) Durable Power of Attorney

A simple will can accomplish a lot of your estate planning goals. Wills are the simplest estate planning tools. They are extremely flexible and provide for appointment of executors, guardians, tax savings trusts, and trusts for children. 

Even though a will is the key legal document in your estate plan, it is only part of it. If your estate plan uses a will as its central document, your estate will usually have to go through probate before it can be distributed to your heirs.

Probate is the court-supervised process of distributing a deceased person's estate. Depending on the estate, as well as the assets and individuals involved, probate can become a lengthy and costly process, which may not only delay distributions to your beneficiaries but also cut down on what they inherit.

Benefits of a Living Trust:

(1)  Living Trust Avoids Probate

By placing your property in a living trust, however, you can avoid probate because the successor trustee distributes assets according to the trust creator's instructions without court intervention. This can mean a faster distribution to your heirs—shortening the time frame from months or years to just weeks—without any additional expenses to the estate.

(2) A Living Trust May Save You Money

A living trust can save money by avoiding probate expenses at your death, they are also likely to hold up better than a will in the event that someone comes forward to contest the distribution, which can also save your estate money.

(3) A Living Trust Protects Your Privacy by Avoiding Probate

A living trust is a private document between the parties involved, and does not become part of the public record. In other words, no one can later go and search public records to find out more about the distribution of your estate.

A will, on the other hand, is public record, so everything in it becomes public as well.

(4) A Living Trust Assists in the Event of Incapacitation

If you become ill or incapacitated, the person you have chosen as successor trustee can step in and manage your affairs without the intervention of a court. This way, you can avoid a court-appointed conservatorship for your affairs

(5) A Living Trust Provides Certainty and Peace of Mind

A living trust sets out a clear plan to deal with all of your assets. This can help prevent you from unintentionally disinheriting someone, can help you provide care for a loved one with special needs into the future, and even protect assets from certain people.

All of these things can give you peace of mind now, knowing that your estate will be handled exactly as you wish later. The existence of the trust can also provide certainty and comfort to your loved ones during an already stressful time because you've laid everything out for them.

Benefits of a Health Care Directive:

(1) Pre-select your care preferences

Write down how you want to be cared for and what makes you comfortable.

(2) Avoid Family Confusion and fighting

Your choices and decisions will be written. Not even a doctor or judge can veto your decisions.

(3) Select someone to carry out your wishes

Ensure the person you trust most can legally take care of you and your needs.

Benefits of a Durable Power of Attorney:

(1) Avoid expensive court proceedings

Your family won't need to go to court to manage your finances on your behalf.

(2) Appoint A Financial Decision Maker

Choose someone you trust to look after your money if you can't.

(3) Eliminate Interruptions To Your finances

Everything will be under control even if you are seriously injured.