Other considerations in Estate Planning
Inventory Assets
Inventory and locate assets and create a master list. This will not only help your attorney in financial planning but alleviate your family from the burden of attempting to create a complete list in the event of your incapacitation or death. Any unusual assets or assets held jointly should have particular care in documentation. Be certain that once you have created a trust, the assets you want protected by the trust are retitled in the name of the trust. Anything that is not so titled when you die will have to be probated and may not go to the heir you intended but to one the probate court chooses, unless you have a revocable living trust -- you also must have a "pour-over will" to cover any of your assets that might be outside of your trust if you die unexpectedly. A pour-over will essentially directs that any assets outside of the trust at the time of your death be put into it so they can go to the heirs you choose.
Name a Power of Attorney
In estate planning, a durable power of attorney is often chosen as a way to plan for those times when you are incapacitated. A durable power of attorney is a written document that remains valid even if you should later become unable to make your own decisions. With a durable power of attorney, you are able to appoint an agent to manage your financial affairs, make health care decisions, or conduct other business for you during your incapacitation. A durable power of attorney may be general or limited. A general durable power of attorney may allow your agent to do every act which may legally be done by you. A limited durable power of attorney cover specific events, like selling property, making investments, or making health care decisions.
One of the most important parts of creating a durable power of attorney is choosing an agent. The agent is the person you choose to carry out the duties you have outlined in the durable power of attorney. The agent should be someone you trust to carry out your wishes, someone who will not take advantage of you when you are incapacitated, and someone who is willing to serve as your agent. The agent is usually a family member or a friend, but you can choose anyone. If you choose to create a durable power of attorney, a lawyer can tailor your document to meet your needs.
Durable Power of Attorney for Health Care
The durable power of attorney for health care is a limited durable power of attorney created only for the purpose of making healthcare decisions. The durable power of attorney for health care can do everything that a living will can do. In addition, it gives your agent the power to actively remind your physician of your wishes. Your agent will make all of your health care decisions in the event you become incapacitated. The agent must follow your wishes and must consider your physician’s recommendations. Any decision must also be within the range of accepted medical practice. Part of creating a durable power of attorney for health care is choosing an agent. The agent is the person that you assign to make health care decision for you. You need to think carefully about who knows you best, and who will be able to speak on your behalf regarding your health care matters.
You should also consider where the person lives and whether that person could be present when health care decisions need to be made. You should discuss your health care wishes with your agent. You should also consider naming a second person to act as an agent in the event that your first choice is unavailable or is unwilling to make the decision.
Once you have signed a durable power of attorney for health care, you should inform your physician, your family, and your religious advisor. If you change your mind after creating the document, you can amend or revoke it at any time.
Make your intentions known
Although discussing money and the transfer of is still a taboo subject with many, it is important to discuss your intentions. Discussing your estate plans with your heirs may prevent disputes or confusion. Inheritance can be a loaded issue. By being clear about your intentions, you help dispel potential conflicts after you're gone.
Remember that trusts are not just for the perceived “wealthy.” Protection of the assets that a lifetime of hard work acquired, providing for your survivors while making your intentions clear, privacy from probate court and potentially alleviating serious tax liability are just a few reasons that trusts are utilized.
If you have considered creating a will or trust, now is the time. Meet with your attorney and financial advisor to devise a plan that carries out your wishes after your passing. Ipava State Bank is a willing partner to carry out your intentions for your loved ones.
