Wills
Your Will gives you a way to provide for the distribution of your property when you die. Besides designating who gets what, you can designate guardians for minor children and appoint a Personal Representative or Executor to manage your affairs.
Revocable or Living Trust
No longer just a tool for the rich, the Living Trust, also known as the Revocable Trust, allows you to transfer your assets to your heirs when you die without going through the process of probate which can save time and money and Trust documents are not public so your family and financial affairs remain private. You keep control of your assets while you're alive. The trust becomes the legal owner of your property and the trustee (probably you) manage it for your own benefit. If you become incapacitated or pass away, the trust becomes irrevocable and a your chosen successor trustee (often your spouse) administers it for the benefit of your heirs according to your instructions. You can revoke or amend it at any time prior to your death. Another advantage of Trusts is that they can provide for distribution of assets over time unlike a Will where the distribution is outright.
Irrevocable Trusts
An irrevocable trust may not be altered or terminated with out permission from the courts. They are often, but not always done to take advantage of favorable tax laws. Other commonly used Trusts are: Charitable Trusts and Special Needs Trust (established so a disabled person can receive financial assistance without jeopardizing government benefits.) You can set up trusts to provide for minor children, to reduce taxes, manage and protect assets, avoid probate, etc. There are many different types of trusts that can be used to fit your needs and reach your goals. Whether any certain trust makes sense depends on your individual circumstances. The qualified Attorneys at Wimmer & Pitts can walk you through the ins and outs of estate planning and explain your options.
Medical Directives or Living Wills
A medical directive or living will is your written instructions on how you want to be treated medically in if you are terminally ill or injured, or you are permanently unconscious. Living wills do not determine decisions made in routine medical treatment and non life-threatening situations.
Health Care Powers of Attorney
With a Health Care Power of Attorney you designate a person to make medical decisions for you when you can't. An example of when this might be used is if you had a medical emergency, an accident or heart attack, and were not conscious or mentally capable of making decisions. Health Directives are important because they allow you to express your preferences. Physicians appreciate these documents. Often, family members, though well intentioned, will disagree. With Health Directives as a part of your estate planning process, the physician knows what you want and whose direction should be followed. They also relieve your family from the responsibility of having to guess your wishes and make difficult medical decisions in stressful situations.
Financial Powers of Attorney
Giving someone a power of attorney is an important decision and a powerful estate planning tool. These powers allow one or more persons to act as an agent on your behalf. They can be very limited, say for a single transaction, or broad, so that someone can handle all of your financial affairs. You can have powers of attorney that take effect immediately or you can have them valid only when you are incapacitated. If you don't have a power of attorney and for some reason are unable to handle your own affairs, a court might step in and appoint one.
Special Needs Trusts
A Supplemental Needs Trust enables a person under a physical or mental disability, or an individual with a chronic or acquired illness, to have held in Trust for his or her benefit, an unlimited amount of assets. In a properly-drafted Supplemental Needs Trust, those assets are not considered countable assets for purposes of qualification for certain governmental benefits.
Charitable Trusts
In 1969, the U.S. Congress created a new type of trust that helped charities and not-for-profit organizations generate more revenue for their causes. This vehicle allows taxpayers to reduce estate taxes, eliminate capital gains, claim an income tax deduction, and benefit charities instead of the IRS. Commonly used is the Charitable Remainder Trust.
You receive income from the trust and leave the remainder to the charities you name when you pass away.
Annual Reviews
Furthermore, estate planning is a process. As time passes, assets increase, laws change, and relationships change, estate plans must adapt to fit new needs. Wills must be kept up to date and trust must be maintained if an estate plan is to be successful. Preparing for the future is not a one-time event; it is an ongoing task which lasts until the end of life
Other Estate Planning
Sometimes, additional more "advanced" estate planning is required. See other Options HERE