Erica Johnson–Estate Planning
Do you think estate planning is just for the rich? Think again. Few Americans are super wealthy. You do not have to be a billionaire to make Forbes Magazine’s list of the 400 Richest People in America. $600 million puts you on the list, like Aubrey Chernick. While Aubrey has $600 million, he is otherwise like many of the rest of us. He’s middle-aged (54), married, and has three children.
Even though most of us do not have $600 million, our concerns are probably very similar to Aubrey’s: Provide security for our loved ones and make the world (or at least our corner of it) better than when we got here. Estate planning helps us achieve these goals, regardless of our wealth, or our lack of it.
Let’s look at an ordinary person in Aubrey’s situation, except for the $600 million. Estate planning would facilitate management of his affairs during periods of illness and a smoother transition upon his death. Without estate planning, who would have the authority to sell assets to pay for hospital bills? How would assets get divided at death?
At a minimum, each person should have a General Durable Power of Attorney, a Health Care Power of Attorney, a HIPAA authorization, a Living Will and a Will. Further, a Revocable Living Trust makes sense for many people. Yet, a recent survey by the legal web site FindLaw.com found that 57% of Americans do not even have a Will, the most basic of estate planning documents.
A General Durable Power of Attorney allows the person you name to make financial decisions for you when you are unable to do so. An example would be to sell an asset to pay bills. A Health Care Power of Attorney gives authority to an Agent to make health care decisions for you. For example, you could name your spouse or your parents. A HIPAA authorization allows the Agents appointed to obtain medical information about you. This is necessary so that your family and those you have put in charge during incapacity can get the information they need to help you.
In a Will you name Guardians for minor children and can say who gets what assets. A Revocable Trust may also be used to indicate who gets what assets. It has the added advantage of avoiding the delay and cost of the probate process. Whether you need a Will or Trust will depend on your unique situation, but everyone should have one or the other.
You do not need to be rich to need an estate plan. A qualified estate planning attorney, one who focuses on helping clients plan for life and their family’s future, can help you plan for your future and your family’s well being.
Erica Johnson is an associate at the law firm of Ambler & Keenan, LLC. She teaches a quarterly class at CFU titled Wills, Trusts, Powers of Attorneys, Living Wills: Make Sense of It All.
Estate planning is a must if you want your family to be grateful to you even after your death and of course leaving them your wealth behind. Planning your estate will definitely put your mind at ease. There are some simple steps you can follow to create an estate plan.
1. Making a will is the first step. You should state who you want to inherit your property. You can choose a guardian to take care of you children after you are gone
2. Your family won’t have to go through probate court if you hold your property in a living trust.
3. You can also decide and instruct on what kind of medical attention you’d like for yourself should you need one in future and your physical and mental condition then would be unable to decide what is good for you. Or you can also authorize someone to make decisions on your behalf.
4. You can propose and authorize a trusted person to handle your finances on your behalf should you become unable to do so physically or mentally on yourself. This will save your property to fall into wrong hands.
5. You can name a guardian how can handle your minor child property inherited from you till your child is an adult.
6. Naming your beneficiary for your bank accounts and retirement plans will mak it easier for the person inheriting your wealth to claim. You can also register your stocks and bonds with your beneficiary for easy transfer after your death.
7. If you have young children, consider life insurance.
8. You can be a better planner and arrange for your own funeral in your life time. You can set up a payable on death account at your bank that will pay for your funeral when you die.
9. Make clear note on your organ donations. And how do you want your body be disposed- burial or cremation.
10. If you are sole owner of your business, you should have somebody in your mind who could take care of it when you are gone. It should be clearly specified.
11. You should keep your all important documents in hand and known to your trusted person should you meet untimely death. Your attorney or your executor would need access to the following documents:
• will
• trusts
• insurance policies
• real estate deeds
• certificates for stocks, bonds, annuities
• information on bank accounts, mutual funds, and safe deposit boxes
• information on retirement plans, 401(k) accounts, or IRAs
• information on debts: credit cards, mortgages and loans, utilities, and unpaid taxes
• Information on Top ten trusts or funeral prepayment plans, and any final arrangements instructions you have made.
These are the simple but important and inevitable things you should take care of in your life time if your intend on an easy transfer of your wealth and property to your loved ones after your death. For sure you cannot be replaced to your family but your deed will make them grateful to your even after you are gone.
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godgift
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estate planning-estate planning
hello
and i dont think that estate planning is just for the rich. its very important for our future .most of the in family matters it works . when i remembered about my uncle’s story . it hurts .really thats why i am always thinking about estate plannings. and above article is so good . i love read it thanks for share . its very helpful really thanks
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fusion
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estate planning–estate planning
I love your blog very much, because any person can blog in their own feelings and to share things with. But i suppose the blog could only be improved if you posted more often.