Wills and Estate Planning: Upton & Hatfield
— Laura M. Dudziak
Upton & Hatfield, LLP
Q: In addition to a will, what are some other estate planning or end-of-life documents people should know about and what do they cover?
A: Having the proper estate planning documents can help you control the transfer of assets, avoid taxes, and fulfill charitable goals. There are several important estate planning documents to consider, in addition to a will, as you begin the process of choosing an estate plan that fits your needs.
Some essential documents to consider as part of your estate plan include a durable general power of attorney, an advance directive, including living will and medical power of attorney, and a revocable trust. A durable general power of attorney and advance directive assist you during your lifetime if you become incompetent and are not capable of making decisions on your own behalf.
They are important tools that can prevent a loved one from having to obtain guardianship to assist in making financial and health care decisions down the road in the event you become incapacitated. A durable general power of attorney is a document that allows you to appoint someone (“agent”) to make financial decisions on your behalf. It can become valid immediately, or when you become incompetent to make these financial decisions yourself. The grant of authority can be broad or limited in scope but should generally be constructed in a way that your agent can perform any financial tasks necessary, such as banking, selling real estate, and accessing safe deposit boxes.
An advance directive allows you to express your choices regarding medical care before any incapacity. The document also allows you to appoint an agent to make healthcare decisions for you in the event you become incapacitated.
A revocable trust, along with the appropriate funding documents, will transfer property owned by the trust, at your death, without the need for probate court. This generally means that your estate may avoid the cost and time delays associated with probate administration following your death.
It is important that the trust be funded during your lifetime by changing the title to the assets to the name of the trust. Real estate, bank and investment accounts, and vehicles are all examples of assets that should all be transferred from your individual name to the name of your revocable trust prior to your death.
