Estate Planning

A Will is instructions for probate. A Will does not avoid probate, which is a common misconception. Having a Will may reduce the cost of probate by naming someone to act as your personal representative (executor) and also designating who will inherit your estate. You can also nominate someone as a guardian for your minor children in the Will.

A revocable trust (sometimes referred to as a living trust) is used to transfer your assets upon death to whomever you wish. While you are living, the Trust is an extension of you and you are the trustee of your Trust. You name a trustee who is in charge of following the Trust instructions following your death or incapacity. The primary advantage of using a Trust is to avoid probate, which allows the transition of your estate to be accomplished in the easiest way possible. A simple revocable Trust does not provide tax advantages that are different from using a Will or similar estate planning tool. The downside of the Trust is that it costs more out of your pocket now than a Will; however, the long term costs are less because of the probate avoidance. There are also more complex trusts that provide for estate tax reduction planning.

This is a relatively simple document that gives someone else authority to make your financial decisions for you if you become incapacitated for any reason. The person you name, called the attorney-in-fact, acts in your best interests to perform transactions for you such as paying bills, selling your real estate if it is necessary, etc. when you are no longer able to do them on your own. If you become incapacitated and do not have a Power of Attorney, your loved ones may need to go through a Court process to obtain a conservatorship over you.

Sometimes called a living will, this document comes in two parts. The first names someone to make health care decisions for you if you are unable to do so yourself. The second part is where you indicate your end of life preferences from cremation or burial to your fears about death and dying. There are many variations of this form and you can get the document free from most hospitals. Here is a Health Care Directive you can download for free: Health Care Directive. (Disclaimer: Use of this document, does not establish an attorney-client relationship. We are happy to provide guidance and legal advice in filling out this form. Please contact us to discuss further.) To be effective, this must be signed either in front of a notary public or in front of two witness, neither of whom can stand to benefit from your death (not a child, for example).