Estate Planning Guide

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Creating an estate plan can be challenging, especially when you are unsure what should be covered. Get our free guide and get a head start on preparing for your future

Benefits of Estate Planning

Although many of us do not like to think about planning for a future that we will not be around to experience, a well-thought-out estate plan lets you determine what happens to your property, the well-being of your family, the guardianship of minor children, and how to minimize or eliminate taxes. It can also cover the extent of medical treatment you desire.

What You Should Consider

At a minimum, an estate plan allows you to select someone you trust to make decisions on your behalf after your death, or if you become incapacitated. It enables your wishes to be carried out quickly and smoothly and helps you determine the degree to which probate can be avoided.

Your plan should be tailored to your specific needs, but generally would include:

Important Topics to Address

  • Beneficiaries. Some assets pass outside of probate by virtue of a beneficiary designation or the manner in which title is held. Therefore, it is important for you and your financial advisor to review the ownership and/or beneficiary designation of these assets to be sure that they will be distributed according to your wishes upon death. Learn more about protecting assets of your married children.
  • These assets include:

-Jointly held property
-Life insurance proceeds
-Retirement benefits
-Employee death benefits
-Retirement plan proceeds

  • Asset Ownership. Assets that have title ownership can be set up so that the title automatically passes to a co-owner. The co-owner, however, would have to agree to any loans secured for the property. Also, careful consideration of value should be made for titled property which could trigger a federal gift tax.
  • Insurance. Insurance policies you should carefully consider can help you cover your debts and even your burial costs. These include life, disability, automobile, and homeowner policies.
  • Business Succession Plan. For business owners, a succession plan details a roadmap for a smooth transition of ownership after death or should you become incapacitated.

What Documents Are Used for Planning?

Core documents generally include:

  • Durable POA. This document allows you to authorize someone, called an agent, to handle your financial matters if you were to become incapacitated. Without a durable POA, your family members would have to institute legal proceedings and request that the court appoint a guardian to carry out these responsibilities. By addressing the possibility of incapacity in advance through a durable POA, you and your family can avoid the expense and potential hassle of having a court-appointed guardian.
  • Healthcare POA. With a healthcare POA, you authorize an agent to handle your healthcare needs in a manner consistent with your intentions in the event of your incapacity. This includes permission for the agent to authorize actions regarding the continuation of life support, nutrition, and hydration, as well as to deal with general healthcare decisions that may arise. Some states authorize a secondary healthcare document, typically called a living will. It works in conjunction with a healthcare POA, authorizing your healthcare providers to take specific action if there is no reasonable hope of your recovery. It also serves an important function when the agent or other individuals you named in your health care POA are unable to make a decision on your behalf relative to continuing life-sustaining treatment.