Estate planning is not a one-size-fits-all endeavor. It is a customized plan designed to best protect you and your loved ones. Most estate plans should include some or all of the following components:
Will: A will (sometimes referred to as a last will and testament) is a written document used to appoint a personal representative (or executor) to handle the person’s affairs upon his or her death, explain how his or her property and money are to be distributed, and appoint a guardian to care for minor or dependent children.
Pour-Over Will: A special type of will in which the person’s trust is named as his or her beneficiary. This document is used in case an individual has created a trust but did not fully fund (i.e. transfer or retitle assets) prior to death. The pour-over will is admitted to the probate court, and everything is transferred to the trust through the probate proceedings.
Revocable Living Trust: While there are many different types of trusts, a revocable living trust is often the foundation of an estate plan. A revocable living trust is a written agreement in which a trustee is appointed to hold title to and manage property for the benefit of one or more beneficiaries. In many instances, the person's will serve as the initial trustee and primary beneficiary. Upon incapacity, the trust property will be managed by a nominated successor trustee for the benefit of such incapacitated individual with little interruption and no court involvement. Upon death, the successor trustee manages and distributes the assets according to the trust’s terms.
Financial Power of Attorney: A written instrument in which an individual has named an individual to act on his or her behalf in financial affairs (e.g., signing a deed, opening a bank account, signing checks, filing taxes, etc.). There are several different types of financial powers of attorney depending upon an individual's needs and the types of transactions that might be required.
Medical Power of Attorney: This document allows an individual to nominate an individual to make medical decisions on his or her behalf in the event he or she becomes incapacitated or otherwise unable to communicate. This power only goes into effect upon the inability of the individual to communicate.
This is provided as information only; it should not be construed as legal advice. You should consult with a lawyer to provide you with specific advice for your own situation. We are here to answer any questions you may have about estate planning, the estate planning process, or probate. Together, we can craft a one-of-a-kind plan to ensure that you and your family are properly protected.
For more information and to discuss your specific circumstances, please contact Timothy Pfund at (248) 210-5953 or tpfund@pfundlegalsolutions.com.
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