Estate Planning is critically important at two times in your life:
- if you become incapacitated by an injury or disease, and
- when you die.
Most people are familiar with a Will, which takes effect upon your death. A Will allows you to make the following choices:
- In your Will, you designate who will receive your property upon your death.
- In your Will, you can also decide when your beneficiaries will receive their gifts. If you think that your children are not responsible enough, then you can delay their ability to withdraw their gifts until they reach a certain age.
- In your Will, if your children are minors, you can designate guardians for your children, if their mother or father does not survive you.
- In your Will, you can minimize the fees and probate expenses which will need to paid upon your death.
- In your Will, you can take steps to minimize the estate taxes which will be due to the federal and state governments upon your death.
Because of the great strides made in medical care, it is very possible that a serious accident or illness may result in temporary or long-term incapacity, rather than your death. The primary tools in this situation are Powers of Attorney and a Revocable Trust. With proper Estate Planning, you can make the following choices:
- You can eliminate the need for an expensive “Living Probate” in which the probate court will appoint guardians for you and your care, and will monitor their actions in public hearings.
- You can designate who you want to make medical decisions for you, in case you can’t make them yourself. You can also name a successor, if your first choice is unavailable.
- You can designate who you want to make financial decisions for you, in case you can’t make them yourself. You can even name different people to pay your bills or run your business or manage your investments, if you feel that’s appropriate.