Maris and David knew it was time tackle their estate planning. They had no idea what paperwork they needed, though – just a Will? So, they looked for a lawyer who could answer their questions and do more than just hand them a stack of documents. Their first step was learning about the common estate planning documents that make up a complete estate plan.
Last Will and Testament
Most people have heard of this document. However, less than half of American adults have written a Will. So, we know about Wills. We’re just not writing them. Maybe it would help to understand what a Will does and why it is so important.
A Will states how the testator (the person who signed the Will) wants his or her property to be distributed. In your Will, you also state who should serve as executor or personal representative. If you have children, you will likely name guardians to care for your children if you pass away while they are minors.
Wills only come into effect when the testator dies, though. At that time, the Will is probated so the testator’s assets can be distributed, after any valid claims are paid.
Other common estate planning documents may take effect during the testator’s life.
Durable Power of Attorney
This legal document is used when the person signing wants to give another person the authority to take certain actions on their behalf. The person who signs the power of attorney may be called the principal. The person being given authority may be called the agent or attorney-in-fact. The powers granted in a power of attorney can be very broad or limited.
All general powers of attorney end when the principal passes away. Typically, a durable power of attorney is used in estate planning. That’s because the authority granted in a durable power of attorney continue if the principal becomes incapacitated.
Durable Power of Attorney for Health Care
This document is similar to the previous power of attorney. However, as the name states, this power of attorney specifically relates to health care decisions. The principal authorizes the agent to make medical decisions if the principal becomes incapacitated or unable to communicate.
Living Will or Declaration
Another common estate planning document relates to a person’s end-of-life treatment. Many people have very strong feelings about medical treatments that prolong life. A declaration lets medical providers and family members know what treatments you find acceptable and those you don’t.
Revocable Living Trust
Trusts are a common estate planning vehicle. There are trusts for different purposes and not everyone will need one. However, there may be benefits to including a revocable living trust in your estate plan.
First, the assets in your living trust will pass to your beneficiaries after your death without going through probate. You and your beneficiaries may enjoy lower taxes thanks to the revocable living trust included in your estate plan. Finally, trusts can be used to protect your assets from creditors and civil judgments.
Take That Important First Step
Learn more about your estate planning options by calling the Lambros Law Office. Our attorneys have the skill and experience to help you craft an estate plan that meets your needs. To schedule an appointment, call us at 401-383-9899 or use our convenient Contact Form. Although located in Cranston, we assist clients throughout Providence and Kent Counties.
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