3 Steps to Protecting Your Family and Property

What is Estate Planning?

Estate planning is the process of preparing documents that answer these questions:

  1. Who do I wish to make financial, legal, and medical decisions for me in the case that I cannot?
  2. What happens to my assets when I die?
  3. What kind of end of life medical decisions do I want to make now. These instructions can be followed by your family later.

What are the words I need to know?

Estate: A collection of your stuff. You may have several estates. That is your stuff can be organized into different collections.

Executor: The person responsible for wrapping up your affairs. Usually called a personal representative in modern law.

Intestate: Died without a will

Probate: The process of either admitting a will and distributing your stuff or if there is no will, opening administration and distributing your stuff and settling your debts.

Testate: Died with a will

Trust: Placing assets in the care of a third person (sometimes yourself) who will manage those assets for the benefit of another person.

What are the steps to planning?

  1. Answer these questions
    1. Who do I want to make financial decisions for me if I was in a coma?
    2. Who do I want to make medical decisions for me if I was in a coma?
    3. Who do I want to make legal decisions for me if I was in a coma?
    4. What are my final end-of-life medical decisions?
    5. Who do I want to implement my end-of-life decisions?
    6. Who gets my stuff when I die?
  2. Just Get It Done
    1. It is highly suggested that you seek the advice of a professional estate planning attorney.
    2. It is easy to mess this process up on your own. A missed signature or failure to get the proper witnesses can invalidate the entire document.
  3. Review The Plan
    1. Every 5 years
    2. Every major life event
      1. Birth of a child
      2. Divorce
      3. Marriage
      4. Inheritance
      5. Death of a spouse

What documents do I need and what do they mean?

Will: A document that gives your instructions as to how to distribute your estate after your death. A will must be admitted to probate. Probate can take 6 months or more before anything is distributed.

Living Will: This is a confusing name for a document… A living will has nothing to do with a will. This is your end-of-life instructions. You make decisions about your healthcare now.

Durable Power of Attorney: You decide now who can make legal and financial decisions for you.

Medical Power of Attorney: You decide now who can make medical decisions for you.

HIPAA Waiver: You need to allow your Medical Power of Attorney the right to view your medical records.

Nomination of Guardian: If you have children under the age of 18, then you need to pick somebody to raise your children.

Trust:   A trust is a way to avoid probate and protect assets in the case of a second marriage.

What Documents do I need to Find to Create My Plan?

  1. All of your account statements and agreements
  2. The deeds to all of your real estate
  3. A list of people your trust to make decisions for you
  4. Information about any companies you own any or a part of
  5. Titles to all vehicles
  6. All life insurance policies