Wills, Trusts & Estates
Everyone needs estate planning. It is not just for the wealthy. It is important to make sure your wishes will be carried out when you are unable to make your own decisions.
At Munson, Vining, Midyette & Geary LLP, we realize that your estate planning needs are unique. Most needs can be met when the correct estate planning documents are in place.
Basic Estate Planning Documents You Should Have
Last Will and Testament
A Last Will and Testament names the persons you chose as your beneficiaries to receive your assets at your death. The Will also allows you to name the person as personal representative to administer your Will through the Probate Testate process. A person dying without a Will is subject to an Intestate Administration which means the beneficiaries are determined by state law.
Living Will
A Living Will (sometimes referred to as an Advanced Directive) is necessary in order to properly and effectively direct the withholding or withdrawal of life prolonging procedures in the event you are in the Terry Schiavo situation.
Heath Care Surrogate
A Health Care Surrogate Designation (sometimes referred to as a Medical Power of Attorney) allows you to name the person you wish to make your medical decisions in the event you should become incapacitated and unable to make your medical decisions.
Durable Power of Attorney
A Durable Power of Attorney is necessary to avoid a confusing and embarrassing guardianship which is otherwise required in the event of your incapacity.
Effective estate planning takes into consideration non-probate assets including joint tenancies with right of survivorship, life insurance policies naming individual beneficiaries, transfer on death assets, pay on death accounts, money markets and other accounts naming individual beneficiaries, and assets held in trust.
It has become increasingly more common for people to avoid the probate process by creating a revocable trust and re-titling their assets into trust. We routinely consult with clients regarding revocable trusts and draft trust agreements where appropriate. The revocable trust leaves you in full control over your assets as long as you are alive and of sound mind. A revocable trust can be changed or even done away with altogether during your lifetime. At the time of death the trust becomes irrevocable and designates the beneficiaries who are to receive trust assets, in effect taking the place of a Will without the necessity of a probate proceeding.
In some cases, you may be advised to create an irrevocable trust during your lifetime. An irrevocable trust, unlike a revocable trust, cannot be changed. However, the assets placed in an irrevocable trust are protected from creditor lawsuits. Additionally, future appreciation of assets placed in an irrevocable trust (particularly life insurance policies) is not subject to gift and estate tax.
