Estate Planning
A comprehensive estate plan might include the following elements:
* Will. Basically a will is used to distribute your wealth among your survivors. If you die without one (intestate), the state will divide up your assets for you. A will may also be used to appoint guardians for minor children, and if you anticipate estate tax complications, it can establish trusts for your survivors.
It is important to keep your will current. It should be examined every few years, particularly whenever there is a significant occurrence such as marriage, divorce, or birth of a child. Give the original to your attorney and keep a copy for yourself. Do not keep the original in a safe deposit box -- depending upon state law, the box may be sealed upon death.
* Durable Power of Attorney. This document grants a person you designate (the �attorney-in-fact�) the power to make decisions for you in the event that you are physically or mentally unfit. It generally relates to financial matters. You might choose a family member (e.g. your spouse) or a trusted personal advisor to act as the attorney-in-fact.
Caution: Ensure that the person you choose is able to manage your investments and accumulated wealth. If the attorney-in-fact is not a professional, identify an advisor he or she can contact.
* Trusts. There are a variety of possible reasons for using trust arrangements. For example, a trust may enable you to protect assets from creditors, make provisions for a minor or disabled child, avoid the probate process, place spending restrictions, or protect the children of an earlier marriage -- just to name a few.
* Advanced Health Care Directive (a replacement for and upgrade to the "Living Will" and the "Durably Power of Attorney for Health Care"). Typically this document spells out the type of medical care you wish to receive in the event that you become unable to make that decision yourself. One of its major values is that it removes a difficult decision for a spouse or other family member.
While the Advanced Health Care Directive is often thought of as a way to avoid extraordinary life support measures, it can also work the opposite way -- it can specify that you want any and all procedures used in an attempt to sustain your life. |
