Basic Estate Planning Considerations

Your Will is the cornerstone of a sound estate plan and the most personal of documents.  As such, drafting of your Will requires careful thought and planning.  The Will is your opportunity to lay out your funeral instructions and burial wishes, to bequeath “special gifts” to loved ones, to name a personal representative to manage winding up your affairs and to direct how you would like your assets to be distributed.  This is an important step in taking responsibility for your affairs and providing for your loved ones, but it’s just the beginning.  This document will walk you through some basic estate planning considerations. 

 We have already discussed the Will briefly, but you will soon understand how important proper planning is.  Please review the following considerations:

•       What are your desires for burial?  What type of funeral would you like to have? 

•       Who do you trust to oversee your affairs and ensure that your wishes are carried out?

•       Have you discussed your wishes with that person?  Are they agreeable to the undertaking?  What if that person is unable or unwilling to serve as your personal representative at the time of your death?  Do you have an alternate in mind? 

•       Do you have any special items you wish to leave to particular individuals?  Are there particular individuals that you do not wish to provide for in your Will?

•       Who are your beneficiaries? 

•       What would happen if you and your spouse died simultaneously or you were predeceased by your beneficiaries? 

As we know, life does not always turn out the way we plan.  Contingency planning is key to sound estate planning.  Have you ever considered what would happen if you became disabled?  If you were in a terrible accident and unable to take care of your own affairs, what would happen?  Who would pay your bills?  What would happen to your spouse, your children or your pets?  The following documents are strongly recommended:

• Durable Power of Attorney – allows you to appoint someone you trust and grants limited powers to that individual to make financial decisions on your behalf should you become unable to do so.

• Health Care Surrogate – allows you to designate someone that is familiar with your values regarding health care and grants them authority to make decisions regarding your health care. 

• Living Will – allows you to decide at what point artificial means of life support would be discontinued.

• Pre-Need Guardian for Minor Child – allows you to appoint a trusted individual to take care of your children if you become unable to do so.

 Additional Considerations:

• Divorce - If you have been divorced, please review the designated beneficiaries on your insurance policies,   bank accounts, brokerage accounts, etc.  You might be surprised to learn your “Ex” would inherit. 

• Living Trust - These days, the high cost of probate and estate taxes have increased the popularity of the “Living Trust.”  The “Living Trust” enables trust assets to pass automatically to another upon your demise, yet remain available for your use and enjoyment during your lifetime.  There are many ways to structure your holdings and a “Living Trust” may or may not be right for you.  Please consult legal counsel before putting your assets in a “Living Trust.”

• Special Needs - Is anyone related to you currently receiving Social Security benefits, Medicaid benefits or disability benefits?  Ask your attorney whether establishing a trust would be right for them.  

• Charity - Please discuss your desire to make charitable donations with your attorney.