Estate Planning

• If you own any interest in property including retirement plans or life insurance policies you should have an estate plan that tells loved ones what will happen to your property when you die.
• If you have people who rely upon you for care and support, especially children, you need to direct who will continue the care and support if you are unable.
• If you have concerns about how your health care and/or financial decisions will be made if you are unable to do so for yourself, you need to prepare documents that will name who should make those decisions for you.

The estate planning process begins when you call us for an appointment.  The first meeting should be no more than 90 minutes.   At that time we will discuss your needs and will suggest an estate plan that is best suited to your needs.  You will also be told  the cost of the recommended plan.  You decide which plan is best for you and your pocketbook.  If you decide not to continue with us, there is no charge for the first meeting.  If you decide to let us prepare your estate plan, the first meeting is included in the total cost.

When we meet to plan your estate we will discuss in detail the role each person in your estate plan will have, but in preparation for the meeting, you may want to consider who these people should be.  One person can serve in all roles and multiple people can serve together in the same role.  However it is important to consider how easy or hard it will be for those persons to work together.

Individuals designated should include relationship, address and telephone number.  A successor should be designated in the event the first person is not available.

Executor – person responsible to manage your estate upon your death.  Responsibilities include paying bills, and distributing property per your will.  The executor can hire financial and legal advisors if needed.  They should be detailed oriented.  You should feel comfortable with them going through all of your personal information and property. Their duties should take no more than 2 years.

Trustee – The Trustee will manage the assets held in the trust.  The length of their duties depends upon the length of the trust term.  The Trustee can hire financial and legal advisors if needed but they are ultimately responsible for investing funds and making decisions about distributions if they are given discretion in the trust document. The Trustee and the Executor can be the same person.

Power of Attorney – The power of attorney (often called the agent) is only effective while you are alive and ceases to be able to act upon your death.   Because this person will have complete access to your assets you must trust them implicitly.   If you prefer to have court supervision of this person, then you would designate them as a Conservator of your estate.  Often the Agent will be the same person as the Executor.

Health Care Representative – This person will make health care decisions for you including end of life decisions if you are unable to do so for yourself.

Guardian – If both parents have died prior to a child reaching the age of 18, the court will appoint a guardian for the child.  If the parents have provided a designation of the guardian in writing prior to their death, the court will appoint that person unless someone can prove it is not in the best interest of the child to do so.  The guardian will have responsibility and control of your minor children (until they are 18 years old) and is responsible for their physical/emotional care.

Standby Guardian – If both parents are incapacitated or out of the country, a standby guardian who was previously designated by the parents in a written statement can take responsibility and control of the minor child for a period of time and if the parents have both died, the standby guardian can take control of the minor child while waiting for a permanent guardian to be appointed. The Standby Guardian can be the same person as the Guardian, but should be someone who could immediately be available to take care of the children.

Will: Your Will distributes property which is owned solely by you.  A will generally does not affect the distribution of assets such as life insurance, retirement plans or annuities unless you do not name a beneficiary.  You appoint your executor in your Will.  Your executor manages your estate after your death, paying your bills and distributing your estate according to your directions as stated in your Will.  If you do not have a will your estate is distributed based upon the laws of the state you are living in at your death.

Appointment of Health Care Representative:  You appoint a person to make health care decisions for you in the event you are unable to communicate your wishes to medical personnel.   These decisions can include end of life decisions.  It is important that you discuss your wishes about these matters with your Health Care Representative.

Living Will:   By signing a Living Will you are letting your health care representative along with your family, your friends, clergy and health care professionals know that you do not want medical interventions if you are in a persistent vegetative state.  However it is your Health Representative’s duty to enforce or not enforce your Living Will based upon what she or he knows of your wishes and the relevant facts.

Durable Power of Attorney:  This document is only valid while your are alive and is perhaps your most important document because it ensures that your affairs will be managed by someone you trust in the event you become incapacitated.  You select the person who will manage your bank accounts, real estate and financial affairs.

Designation of Conservator:   If you become incapacitated and do not have a power of attorney or your power of attorney is not available then the Probate Court may appoint a Conservator of your person and or estate.  The Designation of Conservator tells the court who you would prefer to be appointed.

Funeral directions: Leaving written instructions and naming a person to enforce your directions will save your family a lot of emotional strain.

Trusts: Trusts are a useful part of an estate plan and can be used for various purposes.  Trusts can be used to save on estate taxes or to protect money from creditors or to provide resources to someone without disqualifying them from receiving governmental assistance.  Trusts are also a useful way to manage money on behalf of orphaned children.   Trusts also allow for couples in second marriages to provide for a surviving spouse with the trust being distributed to children from a prior marriage at the surviving spouse’s death.   See our page regarding the different types of trusts.

Beneficiary Designations: Any asset such as life insurance, 401(k) plans, Individual Retirement Accounts (IRA) or annuities that have beneficiary designations, will be distributed the way your beneficiary designation directs.  Your Will has no effect on the distribution of these assets unless you neglect to designate a beneficiary.  For many reasons it is almost never beneficial to your heirs to have these assets go to your estate.  In many instances we believe your beneficiary designations are more important than your will and we will work with you to make sure the beneficiary designation forms reflect your particular wishes.

Joint Property: Property you own with another with rights of survivorship will automatically be distributed to that person if you die first.  We will work with you to make sure that your property is owned correctly so that it will be distributed according to your wishes.

Transfer on Death and Payable on Death Accounts:  Many financial institutions offer the ability to name individuals or entities who will receive the assets in your account upon your death.  The naming of a person or entity will override anything in a will or trust.  In some instances, this may be an appropriate way of transferring your assets.   We work with our clients to use the method of transfer that is most appropriate for their circumstances.